Between 1855 and 2000, real GDP per person in the United Kingdom has grown at an average rate of 1.8 per cent a year. During this 145-year period, _______ has grown at a faster rate than _______.

the population; real GDP
GDP; the population
inflation; real GDP
real GDP; the population

An increase in the amount of capital per hour of work creates a _______ the productivity function, and an advance in technology creates a _______ the productivity function.

shift of; shift of
movement along; movement along
shift of; movement along
movement along; shift of

When capital per hour of work increases by £20,000, real GDP per hour of work increases by £14,000. According to the law of diminishing returns, if capital per hour of work increases by an additional £20,000, real GDP per hour of work _________________.

will decrease by less than £14,000
will increase by £14,000
will increase by less than £14,000
will remain unchanged

In Lotus Land, real GDP per hour of work grows at 9 per cent a year when capital per hour of work increases by 3 per cent a year. The one-third rule tells us that capital per hour of work increased real GDP per hour by __________.

3 per cent a year
6 per cent a year
1 per cent a year
1/3 per cent a year

In Lotus Land, real GDP per hour of work grows at 9 per cent a year when capital per hour of work increases by 3 per cent a year. The one-third rule tells us that advances in technology increased real GDP per hour by __________.

2 per cent a year
6 per cent a year
8 per cent a year
3 per cent a year

In Dreamland, capital per hour of work increased by 6 per cent a year and advances in technology increased real GDP per hour of work by 1 per cent a year. Real GDP per hour of work increased by _________________.

4 per cent a year
6 per cent a year
3 per cent a year
5 per cent a year

In Sleep Time, as capital per hour of work grows by 3 per cent a year and technology does not change, _______________ and real GDP per hour of work increases by _____ per cent a year.

Sleep Time's productivity function shifts upward; 1
Sleep Time moves along its productivity function; 1
Sleep Time moves along its productivity function; 3
Sleep Time's productivity function shifts upward; 3

In Lotus Land, real GDP per hour of work grows at 15 per cent a year when technology increases real GDP per hour of work by 5 per cent a year. ______________ as capital per hour of work grows by _____ per cent a year.

Lotus Land moves along its productivity function; 10
Lotus Land's productivity function shifts upward; 10
Lotus Land's productivity function shifts upward; 30
Lotus Land moves along its productivity function; 30

The economy is at point a in the figure, and the wage rate is the subsistence real wage rate of £100 per day. Classical growth theory predicts that with technological advance, the economy will move first to point _______ and then to point _______.

d; a
f; e
d; e
b; c

An assumption of classical growth theory is that when ______________ the population growth rate _________.

saving declines; decreases
real wage rate decreases; increases
real wage rate exceeds the subsistence real wage rate; increases
people become more skilled; decreases