The formula for steady-state consumption per worker (c*) as a function of output per worker and investment per worker is:
A) c* = f(k*) - $\delta$k*.
B) c* = f(k*) + $\delta$k*.
C) c* = f(k*) ÷ $\delta$k*.
D) c* = k* - $\delta$f(k)*.

Question

The formula for steady-state consumption per worker (c*) as a function of output per worker and investment per worker is:
A) c* = f(k*) -  $\delta$k*.
B) c* = f(k*) +  $\delta$k*.
C) c* = f(k*) ÷  $\delta$k*.
D) c* = k* -  $\delta$f(k)*.

Quizplus · Accepted Answer

The correct formula for steady-state consumption per worker (c*) is c* = f(k*) - δk*, where f(k*) represents output per worker, and δk* represents investment per worker needed to maintain the capital stock (k*) steady. The symbols in the options seem to be formatting errors, but option A conceptually matches the correct formula by indicating that consumption per worker is the output per worker minus investment per worker.

The Formula for Steady-State Consumption Per Worker (C*) as a Function