If an Economy Is in the Steady State,then

question 22

Multiple Choice

If an economy is in the steady state,then

• A) net investment is zero.
• B) depreciation is zero.
• C) investment is zero.
• D) the marginal product of capital is zero.
• E) there are no diminishing returns.

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Definitions:

Sensitivity Analysis

A technique used to determine how different values of an independent variable will impact a particular dependent variable under a given set of assumptions.

Linear Programming

A mathematical method used for achieving the best outcome (such as maximum profit or lowest cost) in a mathematical model whose requirements are represented by linear relationships.

Corner Points

In linear programming, points at the corner or edge of the feasible region which may contain the optimal solution.

Linear Programming

A mathematical method for determining a way to achieve the best outcome in a given mathematical model for some list of requirements represented as linear relationships.