If Two Economies Are Identical (Including Having the Same Saving

question 6

Multiple Choice

If two economies are identical (including having the same saving rates, population growth rates, and efficiency of labour) , but one economy has a smaller capital stock, then the steady-state level of income per worker in the economy with the smaller capital stock:

• A)will be at a lower level than in the steady state of the high capital economy.
• B)will be at a higher level than in the steady state of the high capital economy.
• C)will be at the same level as in the steady state of the high capital economy.
• D)will be proportional to the ratio of the capital stocks in the two economies.

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Definitions:

United Steelworkers

A major labor union in the United States and Canada, representing workers in various industries, especially in manufacturing and steel production.

Taft-Hartley Act

The Taft-Hartley Act is a 1947 United States federal law that restricts the activities and power of labor unions.

Strikes

Work stoppages caused by the mass refusal of employees to work, aimed at protesting against employers' terms.

Lockouts

An action taken by employers to prevent employees from working during a labor dispute, aimed at pressuring the workers to accept certain conditions.