Real GDP in Country X is growing at 7 per cent and its population is growing at 4 per cent. In Country Y, real GDP is growing at 6 per cent and its population is growing at 1 per cent. Thus,

		real GDP per person in Country X is growing at a slower rate than in County Y.
		real GDP per person in Country X is growing at a faster rate than in County Y.
		real GDP per person in Country X is growing at a rate comparable to that in Country Y.
		real GDP per person in Country X is growing at the same rate as in Country Y.
		real GDP per person in Country X and Country Y should be added to estimate the real GDP per person for each country.

Developed countries in general grow _________ than developing countries. Economists use the principle of __________ to explain this.

		slower; increasing returns to capital accumulation
		slower; diminishing returns to capital accumulation
		faster; increasing returns to capital accumulation
		faster; diminishing returns to capital accumulation

In a free floating exchange rate regime, the central bank will ____________.

		fix the exchange value of the country's currency at a certain level.
		intervene in the market if the country's currency exchange value fluctuates beyond a certain range.
		ensure that the exchange value of the country's currency remain constant.
		implement open market operations to influence the exchange value of the country's currency.
		allow the exchange value of the country's currency to freely move according to changes in demand and/or supply factor/s in the market.

'Increasing capital per labour increases output at a decreasing rate' refers to the idea of

		economic development.
		diminishing returns.
		accumulation of labour.
		None of the statements above are correct.