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.

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Definitions:

Straight Line

In mathematics and statistics, a linear relationship or function that can be graphically represented as a straight line in Cartesian coordinates.

Correlation Coefficient

A statistical measure ranging from -1 to 1 that indicates the strength and direction of the linear relationship between two variables.

Scatterplot

A graphical representation of individual data points plotted on a two-dimensional plane, often used to observe and analyze the relationship between two variables.

Least Squares Regression Line

A straight line that best fits the data on a scatter plot, minimizing the sum of the squares of the vertical distances of the points from the line.