If the Per-Worker Production Function Is Given by Y =

question 18

Multiple Choice

If the per-worker production function is given by y = k^1/2, the saving ratio is 0.3, and the depreciation rate is 0.1, then the steady-state ratio of capital to labour is:

• A)1.
• B)2.
• C)4.
• D)9.

---

Definitions:

Free Traders

Individuals or entities advocating for minimal restrictions on international trade and for reducing or eliminating trade barriers.

Temporary Protection

A form of humanitarian status that allows individuals fleeing emergencies in their home countries to remain in a host country for a limited period.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other producers.

Absolute Advantage

The ability of a country or individual to produce a good more efficiently than another entity with the same resources.