An Implication of the Solow Model Is That Once an Economy

question 36

Multiple Choice

An implication of the Solow model is that once an economy reaches the steady state,

• A) per capita consumption is constant
• B) per capita output is constant, but per capita capital is not
• C) per capita capital is variable
• D) per capita consumption continues to grow
• E) per capita consumption is growing

---

Definitions:

Primacy Effect

The tendency to remember information at the beginning of a list better than the information that follows.

First Impression

the initial perception one person has of another upon meeting, which can significantly influence future perceptions and interactions.

Impression Formation

The forming of the first knowledge that a person has concerning another person.

Social Interaction

The process by which individuals act and react in relation to others, forming the basis of social structure and societal norms.