If the Capital-Labor Ratio Is Above the Golden Rule Capital-Labor

question 39

Multiple Choice

If the capital-labor ratio is above the Golden Rule capital-labor ratio,then in the steady state,

• A)capital per worker is above its maximum.
• B)output per worker is less than it would be at the Golden Rule capital-labor ratio.
• C)investment per worker exceeds output per worker.
• D)consumption per worker is not at its maximum.

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Definitions:

Repayment Plan

An arrangement made to pay back a loan or debt in installments over a specified period.

Liquidation

The process of bringing a business to an end and distributing its assets to claimants.

Reorganization

Involves restructuring the legal, ownership, operational, or other structures of a company to make it more profitable or better organized for its present needs.

Unperfected Security Interest

A claim or lien on property or assets that has not been formally registered or publicized, making it vulnerable to third-party claims.