If productivity is growing at some sustained rate g, then output and capital per worker ________
A) are growing at the same rate g, in a stable steady state
B) are growing faster than g, because improving technology encourages a higher rate of saving and investment
C) are growing slower than g, because some of the new capital is merely replacing obsolete capital
D) are growing faster than g, because productivity does not suffer from diminishing marginal product
D
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Consider a public good such as fire protection services. Rich people may benefit more than the poor from such a service because rich people stand to lose more from a fire that destroys property. In this case
A) the benefits-received principle may support the rich paying more taxes than the poor, but not the ability-to-pay principle. B) the ability-to-pay principle may support the rich paying more taxes than the poor, but not the benefits-received principle. C) neither the benefits-received nor the ability-to-pay principles may support the rich paying more taxes than the poor. D) both the benefits-received and the ability-to-pay principles may support the rich paying more taxes than the poor.
The rule of reason was applied in the Alcoa case
a. True b. False Indicate whether the statement is true or false