Suppose the Economy Is Operating at the Steady State and That

question 56

Multiple Choice

Suppose the economy is operating at the steady state and that there is no technological progress. Which of the following is true given this information?

• A) The growth of output per worker is equal to the rate of saving.
• B) The growth of output per worker is positive.
• C) The growth of output per worker is equal to the rate of investment.
• D) The growth of output per worker is zero.
• E) The growth of output per worker is equal to the rate of depreciation.

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Definitions:

Government Redistribution

The transfer of income, wealth, or property rights from some individuals to others through mechanisms such as taxation, welfare programs, and subsidies, conducted by the state or governing bodies.

Welfare Programs

Government initiatives designed to provide financial aid and essential services to individuals and families in need, aiming to improve social well-being.

Marginal Utility

The additional satisfaction or utility gained from consuming one more unit of a good or service.

Utilitarianism

An ethical theory proposing that the best action is the one that maximizes happiness for the greatest number of people.