Given a constant rate of growth of real GDP, what would lead to an increasing real GDP per capita?
a. a rate of population growth that is less than the rate of growth of real GDP
b. a rate of population growth that is greater than the rate of growth of real GDP
c. an increase in the size of the labor force
d. an increase in the capital stock
Question 2
What accounts for specialization?
a. People specialize in the activity in which their opportunity costs are at a maximum.
b. People specialize in the activity in which their opportunity costs are lowest.
c. People do not specialize in any activity.
d. People specialize in the activity that pays the highest wage.
e. People specialize in the activity that they enjoy the most, no matter what the salary is.
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