Figure 7-2

In Figure 7-2, at an output of 500, marginal cost equals

The investment required to maintain steady state growth

A) is impossible to achieve since capital for new workers requires continuous increases in s, the per capita savings ratio. B) must equip new workers with capital equal to that employed by existing workers. C) must replace "worn out" capital. D) B and C.

Which of the following is the least accurate statement?

a. GNP grew very slowly during the colonial period. b. The South's economic performance was very poor after the Civil War. c. Wealth in the colonial US was very equal because there had not been enough time for people to acquire significantly different levels of wealth. d. Wage inequality has increased since 1970.