By measuring _______ we can see that the economies of Hong Kong and Singapore are catching up to the economies of North America but that the economies of Central and South America are not.

real GDP
the population
real GDP per person
inflation per person

Ongoing economic growth requires all of the following except _____________.

investment in human capital
the discovery of new technologies
saving and investment in new capital
population growth

When aggregate labour hours decrease and real GDP increases, _______________________.

productivity increases
technology increases
productivity decreases
technology decreases

The slope of the productivity function _______ as more capital per hour of work is employed because _________________ increases more slowly than does capital per hour of work.

decreases; real GDP
increases; real GDP
decreases; real GDP per hour of work
increases; aggregate hours worked

The law of diminishing returns states that as the quantity of one input increases and all the quantities of all other inputs remain the same, output will _______.

gradually decrease
increase but eventually decrease
increase but by decreasing amounts
increase as capital increases

The one-third rule states that a one percent increase in _______ per hour of work with _______ in technology results in a one-third of one percent increase in _______ per hour of work.

capital; an increase; real GDP
the real wage; an increase; capital
capital; no change; real GDP
the real wage; no change; capital

Classical growth economists believed that the real wage rate always __________________ the subsistence real wage rate.

equals
is less than
returns to
exceeds

Neoclassical growth theory predicts that China's economic growth rate will ___________________.

converge to that in Hong Kong
will continue at around 10 percent a year
decrease when the interest rate increases
influence China's population growth rate

In new growth theory, the _______ does not experience diminishing returns.

marginal product of labour
demand for labour
demand for capital
marginal product of knowledge capital

To increase the pace of economic growth we must increase the growth rate of _______ or increase the rate of technological advance.

capital per hour of work
aggregate supply
aggregate work hours
aggregate demand