Assume Two Economies Are Identical in Every Way Except That

question 11

Multiple Choice

Assume two economies are identical in every way except that one has a higher saving rate. According to the Solow growth model, in the steady state, the country with the higher saving rate will have ________ level of total output and ________ rate of growth of output than/as the country with the lower saving rate.

• A) a higher; a higher
• B) a higher; the same
• C) a lower; a higher
• D) a higher; a lower
• E) the same; the same

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Definitions:

Caste System

A form of social stratification characterized by hereditary transmission of a lifestyle which often includes occupation, status in a hierarchy, and customary social interaction and exclusion.

Citizenship Rights

The set of rights guaranteed to each citizen by the country's constitution and laws, including civil, political, and social rights.

African American

A term referring to Americans of African ancestry, particularly those whose ancestors were enslaved and brought to the United States.

Cultural Capital

The social assets of a person (education, intellect, style of speech, dress, etc.) that promote social mobility in a stratified society.