In a steady-state economy with population growth n and labor-augmenting technological progress g, persistent increases in standards of living are possible because the:

rate of depreciation constantly decreases.

capital stock grows faster than does the labor force.

capital stock grows faster than does the number of effective workers.

saving rate constantly increases.

Specialization—the division of labor—enhances productivity and efficiency by a) allowing workers to take advantage of existing differences in their abilities and skills. b) avoiding the time loss involved in shifting from one production task to another. c) allowing workers to develop skills by working on one, or a limited number, of tasks. d)all of the means identified in the other answers.