When Capital Is Accumulated at the Rate That Maximizes Consumption

question 6

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

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Well-established or conventional routes or methods often followed due to familiarity rather than efficiency or innovation.

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