If two economies are identical (including having the same saving rates, population growth rates, and efficiency of labour) , but one economy has a smaller capital stock, then the steady-state level of income per worker in the economy with the smaller capital stock:
A) will be at a lower level than in the steady state of the high capital economy.
B) will be at a higher level than in the steady state of the high capital economy.
C) will be at the same level as in the steady state of the high capital economy.
D) will be proportional to the ratio of the capital stocks in the two economies.
Correct Answer:
Verified
Q1: If the labour force is growing at
Q3: In a steady-state economy with a saving
Q4: Differences in factor accumulation and/or differences in
Q7: The rate of labour-augmenting technological progress (g)
Q9: The efficiency of labour:
A)is the marginal product
Q10: The assumption that technological progress increases the
Q13: In the Solow model with technological change,
Q17: Conditional convergence occurs when economies converge to:
A)
Q24: Hypotheses to explain the positive correlation between
Q27: If two economies are identical (with the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents