Quiz_6-solutions econ 410

Quiz_6-solutions econ 410 - Answer: B) 2. At the Golden...

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Quiz 6 3/8/11 1. A country with a higher population growth rate has a lower per capita income. According to the Solow model, this is because: A) poorer people often have more kids. B) at a steady state, per capita capital stock is lower if population grows faster. C) poorer people consume a higher percentage of their income and hence save less percentage than richer people. D) a country with a higher population growth rate has a lower percentage of people who finish high schools.
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Unformatted text preview: Answer: B) 2. At the Golden Rule Steady State: A) marginal product of capital is the highest. B) marginal product of capital is the lowest. C) marginal propensity to consume is the highest. D) level of per capita consumption is the highest. Answer: D 3. The total differentiation of the L E 1 is given by: A) L E 1 B) L E L L E E + 1 C) L E D) L L E E Answer: B...
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