A constant rate of U.S. economic growth over a given period of years would involve
A. adding the same amount of real dollars to real GDP per capita each year.
B. compounding the percentage increase in real GDP per capita over the years.
C. adding the same amount of nominal dollars to real GDP per capita each year.
D. None of these are correct.
Answer: B
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Which of the following differentiates firm behavior in oligopoly from firm behavior in other market structures?
a. They are price makers. b. They collude to lower prices together. c. They collude to raise prices together. d. They are price takers. e. They take into consideration how other firms might react to their actions.
If the market price is above the equilibrium price:
a. A surplus will occur and producers will produce less and lower prices b. Producers will make extremely high profits c. A surplus will result and consumers will bid prices up d. A shortage will occur and producers will produce more and lower prices
In which of the following ways is graph A different from graph B?
a. P1 to P2 is larger in graph B than in graph A.
b. Q1 to Q2 is larger in graph B than in graph A.
c. P1 to P2 is larger in graph A than in graph B.
d. Q1 to Q2 is larger in graph A than in graph B.
Recall the Application about growth in China and India to answer the following question(s). From 1978 to 2004, China grew at a rate of 9.3 percent per year and India grew at a rate of 5.4 percent per year.According to this Application, based on the analysis of the sources of growth in China and India, and assuming that nothing changes, it can be concluded that:
A. India's long-term growth prospects are not as strong those for China. B. the growth rate in China should significantly slow down in the near future, but the growth rate in India will continue to rapidly increase in the near and distant future. C. there is convergence between the nations in Asia. D. China's reliance on technology for economic growth makes it less likely to keep pace with the growth rate in India.