In a Steady State with Population Growth and Technological Progress

question 71

Multiple Choice

In a steady state with population growth and technological progress:

• A) the capital share of income increases.
• B) the labour share of income increases.
• C) in some cases the capital share of income increases and sometimes the labour share increases.
• D) the capital and labour shares of income are constant.

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Definitions:

Contribution Margin

The amount by which sales revenue exceeds variable costs of production, indicating how much revenue contributes to fixed costs and profit.

Accounting Break-even

The point at which a company's revenues exactly cover its expenses, leading to a net income of zero.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and hourly labor.

Proposed Project

A plan or proposal for a course of action, especially in a business or scientific context.