A Change in the Capital Stock, ÄK_t, Can Be Expressed $\bar { s }$

question 102

Multiple Choice

A change in the capital stock, ÄK_t, can be expressed as a function of the saving rate, $\bar { s }$ , output, $F \left( K _ { t } , \bar { L } \right)$
, the capital stock, K_t, and the depreciation rate, $\bar { d }$
, by:

• A) \(\Delta K _ { t } = \bar { s } F \left( K _ { t } , \bar { L } \right) + \bar { d } K _ { t }\)
• B) \(\Delta K _ { t } = \bar { s } F \left( K _ { t } , \bar { L } \right) - \bar { d } K _ { t }\)
• C) \(\Delta K _ { t } = \bar { d } F \left( K _ { t } , \bar { L } \right) - \bar { s } K _ { t }\)
• D) \(\Delta K _ { t } = \bar { s } F \left( K _ { t } , \bar { L } \right) / \bar { d } K _ { t }\)
• E) \(\Delta K _ { t } = F \left( K _ { t } , \bar { L } \right) - K _ { t }\)

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Definitions:

Grams

A metric unit of mass equal to one thousandth of a kilogram, often used to measure small quantities of material.

Materials Standards

The expected cost and quantity of materials required for the production of goods, used as a benchmark for evaluating performance.

Labour Hours

The total number of hours worked by employees during a specific period, often used to measure labor input in producing goods or services.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead costs incurred and the expected (or standard) costs for the achieved level of production.