An Increase in the Saving Rate Results in a Higher

question 45

Multiple Choice

An increase in the saving rate results in a higher steady state ________.

• A)growth rate of capital
• B)growth rate of output per worker
• C)level of consumption per worker
• D)level of capital per worker

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Definitions:

Platitudes

Overused statements or cliches that often lack originality or significance.

Pareto Efficient Allocation

A situation in economic theory where resources are allocated in such a way that it is impossible to make any one individual better off without making at least one individual worse off.

Pareto Optimal Allocation

A resource distribution scenario where no individual can be made better off without making at least one individual worse off.

Utility Function

A mathematical representation of how different combinations of goods or services provide levels of satisfaction or utility to an individual.