The upward-sloping character of the labor supply schedule assumes that the ________
A) the substitution effect is equal to the income effect
B) the substitution effect is larger than the income effect
C) the substitution effect is smaller than the income effect
D) the ratio of real wages to the marginal product of labor is equal to the equilibrium nominal wage
B
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New growth theorists conclude that
A) invention is more important than innovation in spurring economic growth. B) economic growth can continue as long as we keep coming up with new ideas. C) rates of global economic growth are limited by the amount of raw materials available. D) the amount of technological innovation in an economy is independent of the rewards offered for innovation.
If a country is growing at an annual growth rate of 5%, what will be its GDP after 5 years?
A) 5 times the current GDP B) 1.28 times the current GDP C) 3.21 times the current GDP D) 1.8 times the current GDP