Which of the following is consistent with classical growth theory?
A) Real GDP per person will increase because technological change induces investment.
B) Real GDP per person will never permanently increase.
C) Competition destroys innovation and decreases profit.
D) As real GDP increases, there will be a decrease in the rate of population growth.
Question 2
The CPI basket contains 400 oranges and 800 pens. In the base year, the price of an orange is 1.00 and the price of a pen is 0.75. This year, urban consumers each buy 300 oranges at 2.00 each and 850 pens at 1.00 each.
The CPI this year is ________. A) 1.60
B) 62.5
C) 160
D) 140
(A) Scratch test; patient is exposed to allergens through a light scratch on the skin; (B) Positive
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