Because of the Choices People Make in the Pursuit of Profit

question 223

Multiple Choice

Because of the choices people make in the pursuit of profit, new growth theory argues that

• A) the economy can enjoy a period of indefinite growth.
• B) the capital stock experiences diminishing returns.
• C) technology growth slows down in the long- run.
• D) population growth increases will bring the real wage rate back to subsistence level.

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Definitions:

Generalized Anxiety Disorder

A disorder marked by a chronic high level of anxiety that is not tied to any specific threat.

Arachnophobia

An intense and irrational fear of spiders and other arachnids, leading to avoidance or distress at the thought or sight of them.

Obsession

Persistent, intrusive, and unwanted thoughts that cause distress or anxiety.

Compulsion

An irresistible urge to behave in a certain way, especially against one's conscious wishes.