The Solow Residual Is a Measure of

question 44

Multiple Choice

The Solow residual is a measure of

• A)average capital productivity.
• B)the rate of growth of real GDP.
• C)total factor productivity.
• D)the marginal product of labour.
• E)average labour productivity.

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Definitions:

Economic Behaviorists

Economic Behaviorists study how psychological, social, cognitive, and emotional factors affect economic decisions of individuals and institutions, and the consequences these decisions have on market prices, returns, and the allocation of resources.

Rational Behavior

Rational behavior refers to the decision-making process that involves choosing the most efficient means to achieve a desired result.

Economic Self-interest

The driving force behind the actions of individuals that encourages them to fulfill their needs and desires.

Crude Quantity Theory

A basic economic theory suggesting that the amount of money in supply directly affects the price level and inflation in an economy.