Question:
If the marginal product of capital net depreciation equals 8 percent, the rate of growth of population equals 2 percent, and the rate of labor-augmenting technical progress equals 2 percent, to reach the Golden Rule level of the capital stock, the ____ rate in this economy must be _____.
A) saving; increased
B) population growth; decreased
C) depreciation; decreased
D) total output growth; decreased
Answer
The correct answer is A) <u>Saving</u> rate of the economy must be i<u>ncreased</u> in order for the economy to reach the Golden Rule Level of the Capital Stock.
Explanation
Golden Rule Level of the Capital Stock is the level at which
MPK = δ,
Where MPK is Marginal Product; and δ the depreciation rate;
so that the marginal product of capital equals the depreciation rate.
In the Solow growth model, a <em>high saving rate results in a large steady-state capital stock and a high level of steady-state output.</em> A low saving rate results to a small steady state capital stock and a low level of steady-state output. Higher saving leads to faster economic growth only in the short run. An increase in the saving rate raises growth until the economy reaches the new steady state. That is, if the economy retains a high saving rate, it will also maintain a large capital stock and a high level of output, but it will not maintain a high rate of growth forever .
Answer:
$3,900
Explanation:
A speed boat bought for $13,000 depreciates at 10% per annum compounded continuously. What is its value after 7 years?
Round the answer to nearest dollar.
Amount of depreciation per annum = 13,000 x 10% = $1,300
Amount of depreciation in 7 years = 1,300 x 7 = $9,100
Value of Speed boat after 7 years = 13,000 - 9,100 = $3,900
Answer:
They both work in the Energy Transmission career pathway
Explanation:
Emilio and Dawn work in the "Energy Transmission career pathway".
In Energy career pathway, there are there stages. First is Energy generation, second is Energy transmission and third is Energy distribution.
In Energy transmission, power is evacuated from the generating stations via transmission networks. This happens in coal mines and power plant control room. Bulk of generated energy is covered in Energy Transmission Pathway from the source to the electrical substation through a transmission network. One needs critical thinking to analyze the information and stress management as employees to handle urgent tasks as well.
Answer:
Positive ROI
Explanation:
Education is probably the best investment that someone can make. It is not easy and it is not nice, but it can help you have a better life and better future.
In this case, Luis spent money in order to get his certificate in repairing air conditioners. He studied 6 months and probably took a test to pass it. After passing it, he owes money which is not good. But the great part is that Luis is now earning much more money than before. His better salary will allow him to pay his loan in 2 years, which is a a short time. Imagine if you could pay your college loans in just 2 years (the average time is 20 years).
