In an Economy with No Population Growth and No Technological

question 45

Multiple Choice

In an economy with no population growth and no technological change, steady-state consumption is at its greatest possible level when the marginal product of:

• A) labor equals the marginal product of capital.
• B) labor equals the depreciation rate.
• C) capital equals the depreciation rate.
• D) capital equals zero.

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Definitions:

Commerce Clause

Clause 3 of Article I, Section 8, of the U.S. Constitution, which authorizes Congress to “regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes.”

Federal Funds

Reserve balances that commercial banks hold at the Federal Reserve, often lent overnight to meet reserve requirements.

Legal Drinking Age

The minimum age established by law at which an individual is allowed to consume alcoholic beverages.

South Dakota v. Dole

A notable United States Supreme Court case concerning federal power and state sovereignty, particularly in the context of conditional federal grants.