If the Per-Worker Production Function Is Given by Y =

question 42

Multiple Choice

If the per-worker production function is given by y = k^1/2, the saving ratio is 0.2, and the depreciation rate is 0.1, then the steady-state ratio of output per worker (y) is:

• A)1.
• B)2.
• C)3.
• D)4.

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Definitions:

Basic Accounting Equation

Represents the foundation of double-entry bookkeeping, stating that assets equal liabilities plus equity.

Assets

Resources owned by a business that are expected to provide future economic benefits.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Internal Transactions

financial events that affect the internal accounting of an organization without involving another entity.