Assume an economy has the following production function: Y= F(K, L)-24K^0.25L^0.75. Assume that the savings rate is 0.08, the depreciation rate is 0.06 and the population growth rate in this economy is 0.045. Assume that the rate of technological progress is equal to 0. Required:
a. Calculate the following steady-statevariables. Round your answers to two decimal places.

1. capital per worker.
2. output per worker.
3. investment per worker
4. consumption per worker

b. Suppose the savings rate in this economy increases to 0.09. Graphically illustratethe effect that an increase in the savings rate will have on steady-state level of capital.
c. Suppose the savings rate in this economy increases to 0.09. Assume all other variables are the same as in Part (a). Calculate the following steady-state variables.

1. capital per worker.
2. output per worker.
3. investment per worker
4. consumption per worker

Which of the following statements are false regarding activity-based costing? non-manufacturing costs are important to include when calculating the cost of each product. costs are allocated based on a pre-determined overhead rate. transitioning from traditional costing methods to activity-based costing can be complicated and costly. activity-based costing follows the same basic calculation methods as traditional costing approaches. none of the above

6. why the aggregate supply curve slopes upward in the short run in the short run, the quantity of output that firms supply can deviate from the natural level of output if the actual price level in the economy deviates from the expected price level. several theories explain how this might happen. for example, the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. consider a soybean farmer who expects a price level of 100 in the coming year. if the actual price level turns out to be 90, soybean prices will , and if the farmer mistakenly assumes that the price of soybeans declined relative to other prices of goods and services, she will respond by the quantity of soybeans supplied. if other producers in this economy mistake changes in the price level for changes in their relative prices, the unexpected decrease in the price level causes the quantity of output supplied to the natural level of output in the short run.

What two categories do strategic choices fall within? a. generic business strategies and cost leadership strategies b. business-level strategies and corporate-level strategies c. cost leadership strategies and corporate-level strategies d. diversification strategies and leadership strategies e. pricing strategies and cost-leadership strategies