A problem with the neoclassical growth theory is its
A) prediction that population growth lowers the real wage rate.
B) inability to explain persistent differences between countries' GDP growth rates.
C) prediction that population growth raises the real wage rate.
D) comparison of the economy to a perpetual motion machine.
B
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When the central bank announces the inflation rate that it will achieve over the next one to four years, it is following a strategy known as
A) money targeting. B) inflation targeting. C) a currency board. D) real business cycle targeting.
Objective probabilities are based on ________ and ________ frequencies.
A) educated guesses; popular B) educated guesses; relative C) data; popular D) data; relative
Which of the following statements is true about Mercantilism?
a. A weak state is needed to regulate and control the economy. b. Adam Smith was the intellectual founder of mercantilism. c. Individual economic freedoms, property rights, and private contracts are more important than the interests of the public. d. There are no universal principles of economics. e. none of the above.
In the long-run equilibrium of a market with free entry and exit, marginal firms are operating
a. at the point where average variable cost equals marginal cost. b. at the minimum point on their marginal cost curves. c. at their efficient scale. d. where accounting profit is zero.