If the Population Growth Rate Is 2%, the Incremental Capital

question 22

Multiple Choice

If the population growth rate is 2%, the incremental capital output ratio is 3, the saving ratio is 24% and the depreciation rate is 5%, the rate of growth of income per person is

• A)1%.
• B)2%.
• C)3%.
• D) 5%.
• E) 8%.

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Definitions:

Return On Investment

A measure of the profitability and efficiency of investment, calculated by dividing net profit by the initial capital cost.

Retirement

The phase of life where one stops full-time work and often receives income from savings, investments, and pensions.

Actuarial Calculations

Mathematical and statistical calculations used by actuaries to evaluate and manage risks and forecast future liabilities or premiums in insurance and finance.

Assumed Investment Rate

A projected or hypothetical rate of return on an investment over a specified period.