An assumption of classical growth theory is that when ________ the population growth rate ________
A) real GDP per person exceeds the subsistence level; increases
B) people become more skilled; decreases
C) the real wage rate falls; increases
D) saving declines; decreases
A
You might also like to view...
We use interest rates to measure the opportunity cost of holding money
Indicate whether the statement is true or false
The risk-shifting problem tends to be __________ for __________ firms than for __________ firms
A) greater; small; large B) greater; large; small C) the same; large; small D) None of the above.
The leader of a federal political party made the following campaign promise: "my administration will increase national defense without requiring sacrifices elsewhere in the economy." the promise can be kept if:
A. the economy moves along the production possibilities in the direction of a greater quantity of defense. B. the economy moves from a point inside the production possibilities curve toward a point on the production possibilities curve. C. the production possibilities frontier shifts outward due to an improvement in technology. D. either b) or c) occurs, but not as a result of a)
In the kinked demand curve model, if one firm reduces its price
A) other firms will also reduce their price. B) other firms will compete on a non-price basis. C) other firms will raise their price. D) Both A and B are correct. E) Both B and C are correct.