If an Economy Is in a Steady State with No

question 79

Multiple Choice

If an economy is in a steady state with no population growth or technological change and the capital stock is below the Golden Rule:

• A) a policymaker should definitely take all possible steps to increase the saving rate.
• B) if the saving rate is increased, output and consumption per capita will both rise, both in the short and long runs.
• C) if the saving rate is increased, output per capita will at first decline and then rise above its initial level, and consumption per capita will rise both in the short and long runs.
• D) if the saving rate is increased, output per capita will rise and consumption per capita will first decline and then rise above its initial level.

Analyze how firms calculate total cost and the impact of various costs on business profitability.

Identify the factors influencing firm’s short-run and long-run operational decisions.

Understand the implications of opportunity costs and how they relate to implicit costs.

Analyze the effects of changes in revenue and costs on a firm's profit.

---

Definitions:

Personality Traits

Persistent traits that define how a person acts, including qualities like openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Cognitive Ability

The capacity to perform mental processes such as learning, reasoning, problem-solving, and memory.

Dark Triad Traits

A set of three personality traits: narcissism, Machiavellianism, and psychopathy, which are associated with a manipulative, self-centered, and sometimes malevolent disposition.

Gaining Power

The process of acquiring increased control or influence over others or oneself, often involving social, political, or personal advancement.