Growth in Real GDP Per Capita Has

question 91

Multiple Choice

Growth in real GDP per capita has:

• A) been steady over the course of human history.
• B) slowed since the mid-nineteenth century compared to before.
• C) been more rapid since the mid-nineteenth century than before.
• D) increased over the last 150 years only in the United States and Canada.

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Definitions:

Substitution Effect

The economic principle describing how changes in relative prices can influence the choice between goods or services, holding the overall satisfaction level constant.

Giffen Good

Good whose demand curve slopes upward because the (negative) income effect is larger than the substitution effect.

Substitution Effect

The alteration in consumer behavior as a result of variations in the relative costs of products, driving consumers to shift from higher-priced items to those that are more affordable.

Increase In Price

occurs when the cost of goods or services rises, affecting consumer purchasing power and potentially leading to changes in supply and demand dynamics.