1. Growth Accounting

• decomposes the factors of aggregate demand into its different components, i.e. it measures the contribution of various factors that contribute to consumer demand.
• decomposes the factors of economic growth into its different components, i.e. it measures the contribution of various factors that contribute to economic growth.
• is the summation of the contribution of every factor of economic growth into an aggregate measure of the growth of an economy
• is the identification of each sector or industry in the economy responsible for economic growth in that economy.

2. More labour inputs can explain

• little of the increases in Canada's real GDP during the last 25 years or so.
• none of the increases in Canada's real GDP during the last 25 years or so.
• some of the increases in Canada's real GDP during the last 25 years or so.
• most of the increases in Canada's real GDP during the last 25 years or so.

3. Since at least 1995 the majority of increases in Canada's real GDP are from

• labour growth.
• capital growth.
• productivity growth.
• technological change.

4. Rearrange the following contributors to the growth of productivity in descending order of their quantitative importance:economies of scale, quantity of capital, improved resource allocation, education and training, and technological advance.

• Technological advance, quantity of capital, education and training, economies of scale, and improved resource allocation.
• Improved resource allocation, technological advance, education and training, economies of scale, and quantity of capital.
• Technological advance, education and training, quantity of capital, improved resource allocation, and economies of scale.
• Education and training, technological advance, quantity of capital, economies of scale, and improved resource allocation.

The per-unit cost of an item is its average total cost (= total cost/quantity). Suppose that a new cell phone application costs $250,000 to develop and only $0.60 per unit to deliver to each cell phone customer.

What will be the per-unit cost of the application if it sells 100 units? Per-unit cost =$ What will be the per-unit cost of the application if it sells 1000 units? Per-unit cost = $ What will be the per-unit cost of the application if it sells 1 million units? Per-unit cost = $