If Two Economies Are Identical (With the Same Population Growth

question 47

Multiple Choice

If two economies are identical (with the same population growth rates and rates of technological progress) , but one economy has a lower saving rate, then the steady-state level of income per worker in the economy with the lower saving rate:

• A) will be at a lower level than in the steady state of the high-saving economy.
• B) will be at a higher level than in the steady state of the high-saving economy.
• C) will be at the same level as in the steady state of the high-saving economy.
• D) will grow at a slower rate than in the high-saving economy.

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Definitions:

Enculturated

The process by which individuals learn and acquire the characteristics, norms, values, and behaviors of their culture through socialization.

Acculturated

The process in which an individual or group adopts the cultural traits or social patterns of another group.

Consumption Patterns

Consumption patterns refer to the habitual behavior of consumers in purchasing and using goods and services, which can be influenced by factors such as income, preferences, and socio-cultural values.

Values

Core beliefs or standards that guide behavior and decision-making.