If the Growth Rate of Resources Is Zero and Real

question 41

Multiple Choice

If the growth rate of resources is zero and real output is growing at 4 percent, then _____.

• A)the stock of capital has fallen by 4 percent
• B)economic growth has fallen by 4 percent
• C)total factor productivity has risen by 4 percent
• D)the stock of labor has fallen by 4 percent
• E)the percentage share of real GDP received by capital has fallen by 4 percent

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Definitions:

Pearson Product-moment

A correlation coefficient that measures the strength and direction of a linear relationship between two continuous variables.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two quantitative variables.

Positive Linear Relationship

A relationship in which increases in the values of the first variable are accompanied by increases in the values of the second variable.

Mental Stability

A state of psychological well-being or equilibrium where an individual is able to function effectively in society.