Assume That Joe Chooses to Deposit Half His Paycheck of $1200

question 46

Essay

Assume that Joe chooses to deposit half his paycheck of $1200 and invests the remaining $600 in an interst-bearing account and runs his balance down evenly throughout the course of the month. Show with the use of a graph what his average monthly holdings would look like.

Grasp the concept of diminishing returns and its implications for economic growth.

Distinguish between physical capital and human capital.

Understand the concept of constant returns to scale in production functions.

Understand the basic components and representations of a production function.