In a Steady State with Population Growth and Technological Progress

question 45

Multiple Choice

In a steady state with population growth and technological progress:

• A) the real rental price of capital is constant and the real wage grows at the rate of technological progress.
• B) the real rental price of capital grows at the rate of technological progress and the real wage is constant.
• C) both the real rental price of capital and the real wage grow at the rate of technological progress.
• D) both the real rental price of capital and the real wage are constant.

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Definitions:

Perishable

Describes goods that have a limited lifespan and can deteriorate quickly if not consumed or used within a certain period, such as food products.

Delivery Gap

The difference between a company's service quality performance compared to customer service expectations.

Zone Of Tolerance

The area between customers’ expectations regarding their desired service and the minimum level of acceptable service—that is, the difference between what the customer really wants and what he or she will accept before going elsewhere.

Standards Gap

The difference between the quality standards set by a company for its products or services and the actual performance perceived by customers.