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.

the population
inflation per person
real GDP per person
real GDP

Ongoing economic growth requires all of the following except _____________.

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

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

technology decreases
labour productivity decreases
labour productivity increases
technology increases

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; real GDP
decreases; 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 other inputs remain the same, output will _______.

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

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

the real wage; an increase; capital
capital; an increase; real GDP
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.

increases above
equals
returns to
exceeds

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

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

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

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

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

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

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