If an Economy Is in a Steady State with No

question 47

Multiple Choice

If an economy is in a steady state with no population growth or technological change and the marginal product of capital is less than the depreciation rate:

• A) the economy is following the Golden Rule.
• B) steady-state consumption per worker would be higher in a steady state with a lower saving rate.
• C) steady-state consumption per worker would be higher in a steady state with a higher saving rate.
• D) the depreciation rate should be decreased to achieve the Golden Rule level of consumption per worker.

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Definitions:

"Prn"

A medical abbreviation for "pro re nata," meaning "as needed," often used in prescriptions and medical orders.

Pain Perception

The process by which the brain recognizes, interprets, and responds to pain signals sent from the body.

Cultural Expectations

The shared norms and values that dictate behaviors and beliefs within a specific group or society.

Preventing Pain

Strategies and practices aimed at minimizing or avoiding the onset of pain.