Q1. The new growth theory contends that economic growth is a function of which of the following two economic variables?

A)   The subsistence real wage and real interest rates.

B)   Real interest rates and technological change.

C)   The creation of knowledge capital and real interest rates.

Q2. Which of the following concepts is uniquely associated with the new theory of economic growth?

A)   Increased spending on health care and population growth.

B)   No diminishing returns to knowledge capital.

C)   Real gross domestic product (GDP) growth based on investment in new capital and technological change.

Q3. Which of the following concepts is uniquely associated with the neoclassical theory of economic growth?

A)   No diminishing returns to knowledge capital.

B)   Real GDP growth.

C)   Opportunity cost of having children.

Q4. Which of the following concepts is uniquely associated with the classical theory of economic growth?

A)   Subsistence real wage.

B)   Target rate of return.

C)   Real GDP growth.

答案和详解如下：

Q1. The new growth theory contends that economic growth is a function of which of the following two economic variables?

A)   The subsistence real wage and real interest rates.

B)   Real interest rates and technological change.

C)   The creation of knowledge capital and real interest rates.

Correct answer is C)         

The new growth theory holds that productivity growth is a function of society’s ability to discover new products and methods (i.e., the creation of knowledge capital), and real interest rates.

Q2. Which of the following concepts is uniquely associated with the new theory of economic growth?

A)   Increased spending on health care and population growth.

B)   No diminishing returns to knowledge capital.

C)   Real gross domestic product (GDP) growth based on investment in new capital and technological change.

Correct answer is B)

Knowledge capital is a special type of public good because it is not subject to the law of diminishing returns. This is a key element of new growth theory. The implication is that, unlike the classical or neoclassical growth theories, economic growth is not limited.

Q3. Which of the following concepts is uniquely associated with the neoclassical theory of economic growth?

A)   No diminishing returns to knowledge capital.

B)   Real GDP growth.

C)   Opportunity cost of having children.

Correct answer is C)

Neoclassical economists argue that the most important economic influence on population growth is the opportunity cost to women for entering the workplace. As real wages for women rise and their job opportunities expand, the opportunity cost of staying home and raising children increases. As the opportunity cost of having children increases, birth rates decline, and population growth slows.

Q4. Which of the following concepts is uniquely associated with the classical theory of economic growth?

A)   Subsistence real wage.

B)   Target rate of return.

C)   Real GDP growth.

Correct answer is A)

Classical growth theory contends that there is a subsistence real wage, defined as the minimum real wage necessary to support life. Whenever real wages are greater than the subsistence real wage, the population will increase, leading to diminishing returns to labor, and eventually, decreased labor productivity. The key to classical growth theory is the population explosion that occurs whenever real GDP per labor hour increases above the subsistence level, which will eventually eliminate any gains from increased labor productivity.

new growth theory