In the key equation for convergence , k(0) is:
A)the initial level of capital.
B)the initial level of capital per worker.
C)the optimum level of capital.
D)the optimum level of capital per worker.

Question

In the key equation for convergence  , k(0) is:
A)the initial level of capital. 
B)the initial level of capital per worker. 
C)the optimum level of capital. 
D)the optimum level of capital per worker.

Quizplus · Accepted Answer

k(0) represents the initial level of capital per worker, which is the variable being analyzed in the convergence equation. The other options (A, C, and D) refer to levels of capital that are not specifically being analyzed in the equation.

In the Key Equation for Convergence , K(0) Is