Over the past 145 years, real GDP per person in the United Kingdom has grown at _______________.

an average of 1.3 per cent a year
2 per cent a year in most decades
3 per cent a year in most decades
an average of 2.4 per cent a year

The preconditions for economic growth include all the following except __________________.

money so that all sorts of transactions can take place
big governments that spend more and more of the nation's income
property rights that are properly enforced by the rule of law
markets that enable people to do business with each other.

The calculation of the contribution of an increase in labour and capital and the contribution of technological change to real GDP growth is called _______________________.

growth calculation in the twentieth century
productivity accounting
growth accounting
technological and capital calculation

Productivity _____________________.

increases when aggregate labour hours increase
is real GDP per hour of work
is real GDP per unit of capital
is work per unit of capital

The productivity function shows the relationship between how _______ per hour of work changes as the amount of _______ per hour of work changes when technology _______.

GDP; capital; advances
the real wage; productivity; remains unchanged
real GDP; capital; remains unchanged
real GDP; real wage; advances

The view that population growth occurs when real GDP per person exceeds the amount necessary to sustain life is part of the ________________.

classical growth theory
new growth theory
modern theory of population growth
neoclassical growth theory

If the real wage rate is greater than the subsistence real wage rate, then classical growth theory assumes that _____________________.

the population will grow indefinitely
the real wage rate will be 4 shillings a day
the real wage rate will be maintained
the population will grow

In neoclassical growth theory, technological change _______________________.

is influenced by the rate of economic growth
is influenced by population growth
occurs by chance
occurs at a steady rate

The target real interest rate that savers want to achieve is the __________.

real interest rate minus the inflation rate
rate of interest preference
preference rate
rate of time preference

______________ predicts that real GDP per person can grow indefinitely.

Neoclassical growth theory
New growth theory
Classical growth theory
Profit growth theory