Which of the following ideas are included in classical growth theory?
I. Subsistence real GDP per person
II. Growth in real GDP per person is temporary.
III. Technological change induces investment.
A) I only
B) I and II
C) II and III
D) I, II and III
B
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An increase in physical capital or a technological advance
A) raises the real wage rate. B) decreases the quantity of labor employed. C) shifts the production function downward. D) decreases demand for labor.
The difference between export spending on domestically produced goods and services by individuals in other countries and import spending on foreign produced goods and services by domestic residents is called:
A) net export expenditure. B) personal consumption expenditure. C) government expenditure. D) investment expenditure.
Which of the following is not true with regard to pollution control through transferable pollution rights?
a. It does not require the government to know in advance the pollution abatement techniques to be utilized. b. It creates an incentive to develop improved pollution abatement technologies c. It ultimately requires all firms to reduce pollution in equal amounts. d. It established private property rights that can be sold.
Which of the following makes short-term conditional low-interest loans to LDCs?
a. Agency for International Development (AID) b. World Bank c. Agency for International Finance (AIF) d. International Monetary Fund (IMF)