The classical growth theory is that real GDP per person ______.
A. only temporarily rises and then returns to the subsistence level
B. grows forever
C. is constant and does not change
D. increases as the population grows
Ans: A. only temporarily rises and then returns to the subsistence level
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One type of demander in the loanable funds market
A) lends funds to purchase financial capital. B) lends funds to purchase physical capital. C) wants physical capital in order to purchase financial capital. D) wants funds to purchase financial capital. E) wants funds to purchase physical capital.
A rational person maximizes
A) risk. B) return. C) expected utility. D) return variance.
A potential problem arises in principal-agent relationships
a. because the agents' actions are not completely observed by the principals b. because the principals' actions are not completely observed by the agents c. because the agent's and the principals' actions are completely observed by each other d. the observability of actions is irrelevant
Billie spends all of her income on soccer balls and jeans, and the price of a pair of jeans is three times the price of soccer balls. In order to maximize total utility, Billie should
a. buy three times as many soccer balls as pairs of jeans. b. buy three times as many pairs of jeans as soccer balls. c. buy both items until the marginal utility of soccer balls is three times the marginal utility of a pair of jeans. d. buy both items until the marginal utility of a pair of jeans is three times the marginal utility of soccer balls.