In classical growth theory, if real GDP per person is above the subsistence level,
A) population grows and lowers real GDP per person to its subsistence level.
B) the pursuit of profit will cause economic growth to accelerate.
C) technological growth occurs and keeps real GDP per person above its subsistence level.
D) the economy will keep growing without limit.
E) None of the above is correct because the classical growth theory asserts that real GDP per person can never exceed the subsistence level.
A
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A) buys; lowers; decreases B) sells; lowers; increases C) sells; raises; decreases D) buys; lowers; increases E) sells; raises; increases
The endowment effect is the tendency of people to be unwilling to sell a good they already own even if they are offered a price greater than they would be willing to pay to buy the good if they did not already own it
Indicate whether the statement is true or false