If the Per-Worker Production Function Is Y = Ak, Where

question 13

Multiple Choice

If the per-worker production function is y = Ak, where A is a positive constant, in the steady state, a:

• A) lower saving rate does not affect the growth rate.
• B) higher saving rate does not affect the growth rate.
• C) lower saving rate leads to a higher growth rate.
• D) higher saving rate leads to a higher growth rate.

---

Definitions:

Expense E

This is not a standard financial term and more context is needed for a specific definition. NO.

Fixed Expenses

Costs that do not change in amount and are required to be paid on a regular basis, such as rent, insurance premiums, and loan payments.

Demand Function

A mathematical representation of the relationship between the quantity demanded of a good and its price, along with other factors.

Undercoverage

A bias in statistical sampling where some members of the intended population are inadequately represented.