In an Economy with No Population Growth and No Technological

question 5

Multiple Choice

In an economy with no population growth and no technological change, steady-state consumption is at its greatest possible level when the marginal product of:

• A)labour equals the marginal product of capital.
• B)labour equals the depreciation rate.
• C)capital equals the depreciation rate.
• D)capital equals zero.

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Definitions:

Threshold

The minimal level of stimulation required to trigger a neural impulse or a physiological response.

Nervous System

The network of nerve cells and fibers that transmits nerve impulses between parts of the body, overseeing both voluntary and involuntary actions.

Muscles

Tissue in the body composed of fibers that contract to produce movement or maintain posture.

Glands

Organs in the body that secrete hormones or other substances directly into the blood or onto a surface.