In a Steady-State Economy with a Saving Rate S, Population

question 16

Multiple Choice

In a steady-state economy with a saving rate s, population growth n, and labor-augmenting technological progress g, the formula for the steady-state ratio of capital per effective worker (k*) , in terms of output per effective worker (f(k*) ) , is (denoting the depreciation rate by δ) :

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

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Definitions:

Consumer Products

Goods sold directly to the end consumer for personal use, as opposed to being sold for further production or processing.

Detrimental Effects

Negative impacts or outcomes that result from a particular action or set of conditions.

Developed Markets

Countries with highly industrialized economies, well-developed financial markets, and high standards of living.

Wage-related Expenses

Costs incurred by employers that are directly associated with the payment of wages to employees, including taxes, benefits, and insurance.