Over the past 100 years, real GDP per person in the United States has grown at _______________.

3 percent a year in most decades
an average of 4 percent a year
1 percent a year in most decades
an average of 2 percent a year

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

big governments that spend more and more of the nation's income
money so that all sorts of transactions can take place
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 labor and capital and the contribution of technological change to real GDP growth is called _______________________.

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

Labor productivity _____________________.

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

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

real GDP; capital; remains unchanged
real GDP; real wage; advances
the real wage; labor productivity; remains unchanged
GDP; capital; 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
neoclassical growth theory
modern theory of population growth

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

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

In neoclassical growth theory, technological change _______________________.

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

The aggregate production function shows how _______ changes when _______ change.

real GDP; labor, capital, and technology
real GDP; capital and technology
GDP; labor and capital
GDP; capital and technology

______________ predicts that real GDP per person can grow indefinitely.

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

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