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 _____________.

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

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

technology increases
technology decreases
labor productivity increases
labor productivity decreases

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

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

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

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

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

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

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

exceeds
increases above
returns to
equals

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

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

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

marginal product of labor
demand for labor
marginal product of capital
demand for capital

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

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

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