In the Romer Model,as More Labor Is Devoted to Research

question 46

Multiple Choice

In the Romer model,as more labor is devoted to research and development there is ________.

• A)an immediate increase in output per capita and a permanent increase in output per capita
• B)an immediate decrease in output per capita and a permanent increase in output per capita
• C)an immediate increase in output per capita and a permanent decrease in output per capita
• D)an immediate decrease in output per capita and a permanent decrease in output per capita

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Definitions:

Budget Constraint

A budget constraint represents the combination of goods and services that a consumer can purchase given their income and the prices of those goods and services.

Marginal Utility

The incremental enjoyment or value obtained from consuming an extra unit of a good or service.

Income-Consumption Curve

A graph that shows how a consumer's optimal bundle of goods changes as their income changes, all else being constant.

Marginal Utility

The change in satisfaction or utility gained from consuming an additional unit of a good or service.