With a Per-Worker Production Function Y = K1/2, the Steady-State

question 46

Multiple Choice

With a per-worker production function y = k1/2, the steady-state capital stock per worker (k*) as a function of the saving rate (s) is given by:

• A)k* = (s/δ)2.
• B)k* = (δ/s)2.
• C)k* = s/δ.
• D)k* = δ/s.

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Definitions:

Firm Offer

An offer made in writing and containing assurances that it will be irrevocable for a period of time not longer than three months despite a lack of consideration for the irrevocability.

Irrevocability Period

The timeframe during which a decision, offer, or agreement cannot be revoked or withdrawn.

UCC

Stands for the Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States, intended to harmonize the law of sales and other commercial transactions across the country.

Finance Lease

A lease agreement where the lessee assumes both the risks and rewards of ownership of the asset, but legal title may not be transferred.