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Answer :
Final answer:
The steady-state investment per worker is positively related to capital per worker because more investment per worker is required to replace depreciated capital per worker.
Explanation:
The correct answer is D. the more investment per worker is required to replace depreciated capital per worker.
In economics, the steady-state investment per worker is positively related to capital per worker because as the capital per worker increases, it leads to an increase in the amount of investment required to replace the depreciated capital per worker. This means that in order to maintain a certain level of capital per worker, more investment is needed as the capital depreciates over time.
For example, if a country has a higher capital per worker, it means that there is a larger stock of capital available for production. However, this capital will depreciate over time and will need to be replaced. Therefore, more investment is required to replace the depreciated capital per worker, resulting in a positive relationship between capital per worker and steady-state investment per worker.
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Because the higher the capital per worker the less the economy needs to equip new workers with the same high level of capital. The answer is OPTION A.
Since there is no longer any capital accumulation per effective worker at the steady-state, saving per effective worker sf(k) equals "depreciation" of the effective capital stock. The amount of capital per worker that is stable over time is known as the steady state level of capital. There is neither accumulation nor depletion of capital over time.
This occurs when the per capita capital stock investment equals the per capita capital stock depreciation. A stable population and per capita consumption are prerequisites for a steady state economy. Production rates and depreciation rates are equal to both birth and death rates. The answer is OPTION A.
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