Suppose the Parameters of the Romer Model Take the Following

question 10

Multiple Choice

Suppose the parameters of the Romer model take the following values:
,
,
,and
) What is the per capita income of this country in the first period,
?

• A)about 1.19
• B)about 11.9
• C)about 12.0
• D)about 14.3
• E)about 9.9

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Definitions:

Utilitarian Ethical Theory

An ethical theory suggesting that the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.

Profit Maximization Theory

The concept that businesses operate with the primary goal of increasing profits to the highest achievable level given their resources.

Martha Stewart

Martha Stewart is an American retail businesswoman, writer, and television personality, known for her lifestyle brand and media ventures, which focus on home improvement, cooking, and decorating.

Insider Trading

The trading of a public company's stock or other securities by individuals with access to non-public, material information about the company.