A key assumption of the Solow Growth Model is that: (a) the marginal product of capital diminishes as additional units of capital are added; (b) output per capita declines as a nation’s capital to labor ratio increases; (c) the marginal product of labor tends to rise as additional units of labor are added; (d) capital tends to depreciate at an increasing rate as a nation’s output increases.
A key assumption of the Solow Growth Model is that: (a) the marginal product of capital diminishes as additional units of capital are added; (b) output per capita declines as a nation’s capital to labor ratio increases; (c) the marginal product of labor tends to rise as additional units of labor are added; (d) capital tends to depreciate at an increasing rate as a nation’s output increases.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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A key assumption of the Solow Growth Model is that:
(a) the marginal product of capital diminishes as additional units of capital are added;
(b) output per capita declines as a nation’s capital to labor ratio increases;
(c) the marginal product of labor tends to rise as additional units of labor are added;
(d) capital tends to
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