With Steady State Growth

question 55

Multiple Choice

With steady state growth:

• A)the optimal output per worker grows faster than the optimal capital per worker.
• B)the steady state growth rate of real GDP per worker is greater than the rate of technological progress.
• C)the average product of capital is falling.
• D)all of the above.

---

Definitions:

Maximizing Profits

The process by which a firm adjusts its production to achieve the highest possible profit.

Metropolitan Opera

A leading American opera company based in New York City, known for its live performances and international broadcasts.

Perfect Competitor

A perfect competitor refers to a market participant in a perfectly competitive market, characterized by many buyers and sellers, all dealing in a homogenous product with no barriers to entry or exit.

Entire Market

The total comprehensive scope of a marketplace, encompassing all buyers, sellers, and products involved.