In the Absence of Technological Progress,which of the Following Is

question 30

Multiple Choice

In the absence of technological progress,which of the following is true when the economy is operating at the steady state?

• A)the growth of output per worker is zero.
• B)the growth of output per worker is equal to the saving rate.
• C)the growth of output per worker is equal to the rate of investment.
• D)the growth of output per worker is equal to the rate of depreciation.
• E)none of the above

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Definitions:

Factor Market

A marketplace for the services of a factor of production, such as labor, capital, or land.

Labor

Human effort, whether physical or mental, used in the production of goods and services.

Circular-Flow Diagram

A pictorial scheme of the economy, focusing on the exchange of dollars between households and firms through the market system.

Product Market

The marketplace where final goods or services are traded between sellers and consumers.