Balanced growth occurs when
A) the economy is in steady state.
B) the growth rates for the capital-labor ratio and real GDP per worker are the same.
C) total factor productivity and capital accumulation each account for the same amount of growth in labor productivity.
D) nations converge to the same level of real GDP per worker from equal increases in total factor productivity.
B
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A physical examination is NOT a good screening device for life insurance companies if
A) life-threatening diseases are usually undetected. B) doctors cannot be easily bribed to write a good report. C) medical history is a good predictor of life expectancy. D) one's current state of health is a good predictor of life expectancy.
A 2 percent increase in the price of neckties leads to a 5 percent decrease in the quantity demanded of neckties. The absolute price elasticity of demand is
A) 2.5. B) 1. C) 0.4. D) 0.2.