The Formula for the Steady-State Ratio of Capital to Labour

question 14

Multiple Choice

The formula for the steady-state ratio of capital to labour (k*) with population growth at rate n but no technological change, where s is the saving rate, is s:

• A)divided by the sum of the depreciation rate plus n.
• B)multiplied by the sum of the depreciation rate plus n.
• C)divided by the product of f (k*) and the sum of the depreciation rate plus n.
• D)multiplied by f (k*) divided by the sum of the depreciation rate plus n.

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Definitions:

Product Price

The amount of money required to purchase a good or service, typically influenced by factors such as cost of production, market demand, and competition.

Production Schedules

Plans that outline the timing and sequence of manufacturing processes to efficiently meet production goals and deadlines.

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This is an economic process where a firm determines the price and output level that returns the greatest profit.