The capital-labor ratio will tend to increase over time when
A) investment per worker equals saving per worker.
B) investment per worker exceeds saving per worker.
C) investment per worker is less than depreciation per worker.
D) saving per worker equals depreciation per worker.
E) output per worker is less than capital per worker.
B
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Regarding the output growth slowdown during the 1970s and 1980s, it is true that
a. the slowdown took place in the U.S. but not other developing countries. b. the primary determinant of the slowdown was lower labor productivity growth. c. increases in capital formation did not offset some of the slowdown in labor productivity growth. d. both b and c.
If the income effect of a change in the wage dominates the substitution effect, then workers will want to work more when the wage increases
a. True b. False Indicate whether the statement is true or false