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Ganezh [65]
2 years ago
14

If the marginal product of capital net depreciation equals 8 percent, the rate of growth of population equals 2 percent, and the

rate of labor-augmenting technical progress equals 2 percent, to reach the Golden Rule level of the capital stock, the ____ rate in this economy must be _____.
Business
1 answer:
Sphinxa [80]2 years ago
5 0

Question:                                                                                                                                                                                                                                                                                  

If the marginal product of capital net depreciation equals 8 percent, the rate of growth of population equals 2 percent, and the rate of labor-augmenting technical progress equals 2 percent, to reach the Golden Rule level of the capital stock, the ____ rate in this economy must be _____.      

A) saving; increased  

B) population growth; decreased

C) depreciation; decreased

D) total output growth; decreased

Answer

The correct answer is  A) <u>Saving</u> rate of the economy must be i<u>ncreased</u> in order for the economy to reach the Golden Rule Level of the Capital Stock.

Explanation

Golden Rule Level of the Capital Stock is the level at which

MPK = δ,

Where MPK is Marginal Product; and δ the depreciation rate;

so that the marginal product of capital equals the depreciation rate.

In the Solow growth model, a <em>high saving rate results in a large steady-state capital stock and a high level of steady-state output.</em> A low saving rate results to a small steady state capital stock and a low level of steady-state output. Higher saving leads to faster economic growth only in the short run. An increase in the saving rate raises growth until the economy reaches the new steady state. That is, if the economy retains a high saving rate, it will also maintain a large capital stock and a high level of output, but it will not maintain a high rate of growth forever .  

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Dominik [7]

Answer:

Supply equals demand

Explanation:

Equilibrium is a situation which occurs when there is a balance between quantity demanded and quantity supplied.

5 0
3 years ago
To better facilitate an understanding of layout​ issues, Arnold Palmer Hospital studies using A. queuing theory. B. transportati
klio [65]

To better facilitate an understanding of layout​ issues, Arnold Palmer Hospital studies using (A) queuing theory.

Explanation:

Queuing theory also known as the  "queuing theory" it is used to  examine the various  component in waiting line that needs to be served.

The queuing theory refers to the various component like the arrival process,the service process,number of computerized system, number of servers used and the number of people  in queue (i.e customers)

The various  applications of the queuing theory include -traffic management,(vehicles management, two or four wheeler), scheduling patients in government hospitals, jobs that are done on machines, computer programs), and facility designs of  supermarkets.

Thus,In a hospital settings the layout issues can be dealt by understanding the queuing theory.

3 0
3 years ago
At December 3 2018, Waco Travel Agency has an Accounts Receivable balance of $93,000. Allowance for Uncollectible Accounts has a
Alexxandr [17]

Answer:

                          Waco Travel Agency

                              Journal entry

Date           Account and explanation                Debit        Credit

Dec 31 Bad debt expense (800,000 * 1%)       $8,000

              Allowance for uncollectible accounts                $8,000

           (To record uncollectible account expense)  

                           Waco Travel Agency

                                  Balance Sheet

<u><em>Current assets</em></u>

Account receivable                                        $93,000  

Less: Allowance for uncollectible account <u>($8,870) </u>---- ($8,000 + $870)

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7 0
3 years ago
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luda_lava [24]

Answer:

The correct answer is B

Explanation:

Non-equity strategic alliance is the kind or type of the alliance which is established when two or more companies sign or agree a relationship which is contractual to the pool of their resources as well as capabilities together.

So, in this case, the automobile manufacturer, who decided to work on the low cost fuel, then the domestic automobile company which is grounded in China, willing to partner with the automobile manufacturer. It is an alliance which is non- equity strategy as they pool their capabilities and the resources.

5 0
3 years ago
When pulling the owner's capital balance from the end-of-period spreadsheet into the statement of owner's equity, why is it also
ratelena [41]

Answer:

d.

Explanation:

Based on the information provided within the question it can be said that it is important to check this information because there may have been additional investments made during the year reflected in the balance. Therefore without knowledge of these investments the final balance may seem incorrect in the eyes of the accountant.

4 0
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