Q1. Correct answer is C) Statement 3 is incorrect. It is the neoclassical theory of economic growth (not the classical theory) that contends that population growth is a direct function of the opportunity cost for women entering the workplace. Q2. Correct answer is C) A key component of the classical growth theory is that growth in GDP is always temporary. When real GDP per capita rises above a subsistence level, the population will grow, driving GDP per capita back down to its original level.
Q3. Correct answer is C) The discovery of new technologies has contributed more to sustained economic growth than investment in new capital or increased investment in human capital.
Q4.Correct answer is C) According to the “one-third” rule, at a given level of technology, a one percent increase in capital per labor hour results in a 1/3 of 1% increase in real GDP per labor hour. If capital labor per hour grew by 5%, then the capital growth contribution to the increase in GDP is 1.67% (= 1/3 × 5%). |