“Economic growth can only occur when markets work well, which requires that transactions involving property are secure and governed by the rule of law.” Which factor of economic growth does this statement best describe?

1. real GDP growth
2. growth GDP per capita
3. elimination of negative externalities
4. contractual rights
5. labor productivity growth

Which of the following primarily describes an investment in human capital?

1. A company invests in new equipment for its plant.
2. A firm reduces its number of workers to decrease capital costs.
3. A company hires more workers to stay competitive.
4. A country experiences higher population growth.
5. An individual receives on-the-job training to be more productive.

According to the growth accounting framework, which factor typically explains most of a country’s real GDP growth?

1. human capital
2. technological growth
3. population growth
4. physical capital
5. natural resource supply