When Capital Is Accumulated at the Rate That Maximizes Consumption

question 2

Multiple Choice

When capital is accumulated at the rate that maximizes consumption per worker in the steady state, the marginal product of capital is equal to the

• A)savings rate plus the population growth rate.
• B)savings rate divided by the marginal product of labour.
• C)depreciation rate plus the savings rate.
• D)population growth rate plus the depreciation rate.
• E)consumption per worker plus the population growth rate.

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Definitions:

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A digital file, such as music or a movie, purchased and downloaded from Apple's iTunes platform.

Marginal Benefit

The increase in satisfaction or usefulness gained from the consumption of an additional unit of a good or service.

Marginal Cost

The expense associated with manufacturing an extra unit of a product or service.

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Outdoor lighting installed along streets and in public areas to provide illumination during the night for visibility and safety.