Investment Per Worker (I) as a Function of the Saving

question 20

Multiple Choice

Investment per worker (i) as a function of the saving ratio (s) and output per worker (f(k) ) may be expressed as:

• A) s + f(k).
• B) s - f(k).
• C) sf(k).
• D) s/f(k).

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Definitions:

Scarce

Describes a condition where resources, goods, or capabilities are limited in availability relative to the demand for them.

Wants

Desires for goods, services, or experiences that are not essential for survival but are deemed desirable based on individual preferences.

Comparative Advantage

The ability of a country or individual to produce a particular good or service at a lower opportunity cost than another.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service.