Question: Please help me with these multiple choice questions In the Solow model with technological progress, suppose that the rate of depreciation is 10% per year,

Please help me with these multiple choice questions

In the Solow model with technological progress, suppose that the rate of depreciation is 10% per year, the population growth rate is 2% per year, and the growth rate of technology is 3% per year. Which of the following represents the level of investment needed to maintain a constant capital stock (K) in this economy?

a. 0.02K

b. 0.03K

c. 0.05K

d. 0.10K

Consider the Human Capital Accumulation model with a production function given by =0.50.5, saving rates K=0.16 and H=0.09, a common depreciation rate is =0.05 and =1. Which of the following is false?

a. the long-run intensity of human capital relative to physical capital will fall whenH falls

b. the long run growth rate of physical capital will fall when H falls

c. the long-run intensity of human capital relative to physical capital is 9/16

d. the long-run growth rate of physical capital is 0.12

Suppose that production function is =1/3()2/3 and competitive firms hire capital and labor to produce output. Let r be the return paid to capital and w be the real wage paid to labor. Which of the following is true?

a. a profit-maximizing firm hires capital and labor until average products equal factor prices

b. labor income share is 1/3

c. real return to capital r grows at the rate of productivity growth

d. real wages w grows at the rate of productivity growth

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