In Classical Growth Theory, If Real GDP Per Person Is

question 33

Multiple Choice

In classical growth theory, if real GDP per person is above the subsistence level,

• A)technological growth occurs and keeps real GDP per person above its subsistence level.
• B)population grows and lowers real GDP per person to its subsistence level.
• C)the pursuit of profit will cause economic growth to accelerate.
• D)the economy will keep growing without limit.
• E)None of the above is correct because the classical growth theory asserts that real GDP per person can never exceed the subsistence level.

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Definitions:

Total Market

The entirety of the demand and supply for a particular good or service across all its potential markets.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for some degree of market power and product differentiation.

Oligopolistic

Pertaining to a market structure characterized by a small number of firms controlling the majority of the market share, often leading to coordinated or interdependent market behavior.

Market Size

The total volume of sales or potential sales for a product or service within a particular market.