31. Assuming robots represents capital goods and beer consumer goods, and the growth path of country 1 is from point (a) to (b) to (c), while country 2 goes from points (d) to (e) to (f), what can you conclude about these countries? a) Country 1 has a higher savings rate b) Country 2 starts out with a higher standard of living c) Country 2 has a higher rate of growth d) Both (a) and (b) are correct e) None of the above 6050403020a10d1020304050REFRROBOTS

Answered: untries? a) Country 1 has a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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31. Assuming robots represents capital goods and beer consumer goods, and the growth path of country 1 is from point (a) to (b) to (c), while country 2 goes from points (d) to (e) to (f), what can you conclude about these countries?

		a) Country 1 has a higher savings rate
		b) Country 2 starts out with a higher standard of living
		c) Country 2 has a higher rate of growth
		d) Both (a) and (b) are correct
		e) None of the above

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Capital good raises the productive capacity over the long run but in short run consumption level declines.

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