If We Define $\bar { s } _ { 1 }$

question 69

Multiple Choice

If we define $\bar { s } _ { 1 }$ and $\bar { s } _ { 2 }$
As the saving rates in Countries 1 and 2, respectively, $\bar { d } _ { 1 } = \bar { d } _ { 2 }$
As the depreciation rates in Countries 1 and 2, respectively, and   $\bar { A } _ { 1 }$ And  
$\bar { A } _ { 2 }$ As productivity in Countries 1 and 2, respectively, in the Solow model, the equation ________ predicts that ________ contribute the most to differences in steady-state output per worker.

• A) \(\frac { y _ { 1 } ^ { * } } { y _ { 2 } ^ { * } } = \left( \frac { \bar { A } _ { 1 } } { \bar { A } _ { 2 } } \right) ^ { 3 / 2 }\) ; productivity differences
• B) \(\frac { y _ { 1 } ^ { * } } { y _ { 2 } ^ { * } } = \left( \frac { \bar { A } _ { 1 } } { \bar { A } _ { 2 } } \right) ^ { 3 / 2 } \times \left( \frac { \bar { s } _ { 1 } } { \bar { s } _ { 2 } } \right) ^ { 1 / 2 }\) ; saving rate differences
• C) \(\frac { y _ { 1 } ^ { * } } { y _ { 2 } ^ { * } } = \left( \frac { \bar { s } _ { 1 } } { \bar { s } _ { 2 } } \right) ^ { 3 / 2 } \times \left( \frac { \bar { A } _ { 1 } } { \bar { A } _ { 2 } } \right) ^ { 1 / 2 }\) ; productivity differences
• D) \(\frac { y _ { 1 } ^ { * } } { y _ { 2 } ^ { * } } = \left( \frac { \bar { A } _ { 1 } } { \bar { A } _ { 2 } } \right) ^ { 3 / 2 } \times \left( \frac { \bar { s } _ { 1 } } { \bar { s } _ { 2 } } \right) ^ { 1 / 2 }\) ; productivity differences
• E) \(\frac { y _ { 1 } ^ { * } } { y _ { 2 } ^ { * } } = \left( \frac { \bar { s } _ { 1 } } { \bar { s } _ { 2 } } \right) ^ { 1 / 2 }\) ; saving rate differences

Understand the concept of warranted arguments and when an argument is considered worthy of acceptance.

Comprehend the progression from coincidence to correlation to causal explanations.

Recognize the impact of statistical analysis in evaluating arguments and making generalizations.

Identify the misuse of numbers in arguments and the importance of using appropriate descriptive measures.

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Definitions:

Standard Costing

A cost accounting method that uses standard costs for direct materials, labor, and overhead to help managers control costs by comparing expected costs to actual costs.

Isolating Variances

A process in managerial accounting for identifying and analyzing differences between actual and expected performance.

Direct Materials

Raw materials directly traceable and assignable to a manufactured product as it is being produced.

Direct Labour

The labor costs directly attributable to the production of goods or the provision of services.