In classical growth theory, if real GDP per person is above the subsistence level,
A) population grows and lowers real GDP per person to its subsistence level.
B) the pursuit of profit will cause economic growth to accelerate.
C) technological growth occurs and keeps real GDP per person above its subsistence level.
D) the economy will keep growing without limit.
E) None of the above is correct because the classical growth theory asserts that real GDP per person can never exceed the subsistence level.
A
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Development economics is the study of the
a. alleviation of absolute poverty. b. transformation of institutions. c. allocation of resources in developing countries. d. all of the above.
An inflationary gap occurs when
A) aggregate demand falls, but other things remain constant. B) short-run aggregate supply falls, but other things remain constant. C) the short-run equilibrium level of real GDP is greater than long-run aggregate supply. D) the short-run equilibrium level of real GDP is less than long-run aggregate supply.
When a monopolist increases output, total revenue will:
A. increase if the price effect outweighs the quantity effect. B. decrease if the quantity effect outweighs the price effect. C. increase if the quantity effect outweighs the price effect. D. increase but it will have no price effect.
The federal grant program for POTW construction
a. displaced the Clean Water State Revolving Fund (CWSRF) Program b. assured that the larger proportion of spending on POTW construction was at the local level c. lowered the federal cost share in 1985 to reduce inherent inefficiencies d. encouraged cost-effective decision making at the municipal level