A key element of the classical growth theory is that
A) low taxes promote economic growth.
B) an increase in population leads to increase in labor supply and a decline in real GDP per person.
C) economic growth can be sustained as long as government intervention does not occur.
D) increases in technology drive economic growth.
E) market forces drive economic growth.
B
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A barter system of payment is
A) different from a money system of payment because money does not require a double coincidence of wants. B) similar to a money system of payment because both require a double coincidence of wants. C) different from a money system of payment because the barter system is a better unit of account. D) similar to a money system of payment because both use one asset as a unit of account. E) similar to a money system of payment because both are used as stores of value and units of account.
Which of the following is an example of search costs?
A) Isabel knows that other neighbors' sleep patterns must also be affected by the howling dogs in her neighborhood and sets out to find those neighbors. B) Isabel is bound and determined to to find out which of her neighbors owns the howling dogs that are preventing her from getting a full night's slee