If Capital Grows at 3 Percent Per Year and Labor

question 48

Multiple Choice

If capital grows at 3 percent per year and labor grows at 1 percent per year, and capital's share is 1/3 while labor's share is 2/3, if there is no technological progress and the neoclassical assumptions hold, the growth rate of output will be:

• A) 1-1/3 percent per year.
• B) 1-2/3 percent per year.
• C) 3 percent per year.
• D) 2-1/3 percent per year.

---

Definitions:

Personality Traits

Relatively stable characteristics or tendencies that can predict how individuals will behave in a wide range of situations.

Big Five Traits

A model proposing that five broad dimensions – openness, conscientiousness, extraversion, agreeableness, and neuroticism – sufficiently capture most aspects of personality.

Universally

Applicable or occurring everywhere or in all cases without exception.

Openness

A personality trait that describes the degree to which an individual is open to experiencing a variety of activities, engaging in imaginative activities, and willing to entertain new ideas.