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Igoryamba
3 years ago
15

In an economy with population growth at rate n, the change in capital stock per worker is given by the equation:_______.

Business
1 answer:
Natalija [7]3 years ago
6 0

Answer:

B. Δk = sf(k) – (δ + n)k.

Explanation:

The Solow Growth Model, developed by Robert Solow, a Nobel Prize winning economist. It was the first neoclassical growth model which was was built upon the Keynesian Harrod-Domar model. The modern theory of economic growth is given by the Solow Model.

The equation below gives us the change in capital stock per worker with population growth at rate n;

Δk = sf(k) – (δ + n)k.

Where k: capital stock per worker in period t

s: savings rate

δ: rate of depreciation of capital

n: labor or number of workers

sf(k): savings per capita multiplied by a fraction of income saved.

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Answer:

Depreciation for 6 months ending June 30, 2016 is $ 5,000 and the accounting entry to record the transaction is:

Depreciation Expense  - Debit                    $ 5,000

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Explanation:

The depreciation charge for the year is calculated as follows:

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3 years ago
Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $6.40 dividend every year, in perpetuity. If thi
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Answer:

7.92%

Explanation:

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3 years ago
The income approach calculates the _____.
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Answer:

National income

   

Explanation:

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Thus, from the above we can conclude that the correct option is C.

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A primary consideration for a potential franchisee is that the capital required to become a franchisee will likely be:
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Answer:

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