Assume that an economy experiences both positive population growth and technological progress. Once the economy has achieved balanced growth, we know that output (Y) is
A) constant.
B) growing at a rate of gA + gN.
C) growing at a rate of gN.
D) growing at a rate of gA.
E) growing at a rate of gA - gN.
B
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Refer to Figure 4-4. The figure above represents the market for iced tea. Assume that this is a competitive market. If 20,000 units of iced tea are sold
A) marginal benefit is equal to marginal cost. B) the deadweight loss is equal to economic surplus. C) producer surplus equals consumer surplus. D) the marginal benefit of each of the 20,000 units of iced tea equals $3.
Refer to the diagram. If a firm produces output Q 1 at a unit cost of b, then the:
A. firm is not fulfilling the least-cost rule in employing resources.
B. firm may or may not be maximizing profits.
C. marginal product per dollar's worth of each resource employed is not the same.
D. firm has achieved minimum efficient scale.