The production of capital goods, which are then used to produce consumer goods, is called

Neoclassical growth theory predicts that China's economic growth rate will ________

A) decrease when the interest rate increases B) continue at around 10 percent a year C) always remain above the U.S. economic growth rate D) eventually converge to the U.S. economic growth rate

All of the following are reasons for economies of scale EXCEPT

A) diminishing marginal product. B) specialization. C) dimensional factors. D) more efficient production equipment.