A Key Characteristic of the Production Function in the Endogenous

question 14

Multiple Choice

A key characteristic of the production function in the endogenous growth model presented in the text is that

• A) there are increasing returns to scale in human capital.
• B) there are decreasing returns to scale in human capital.
• C) there are constant returns to scale in human capital.
• D) at low levels of human capital, there are increasing returns to scale in human capital, while at high levels of human capital, there are decreasing returns to scale in human capital.
• E) there are substantial diminishing marginal returns to human capital.

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Definitions:

Lobe-Finned Fishes

A class of fish known for their fleshy, lobed, paired fins, which are precursors to the limbs of land-dwelling vertebrates.

Amphibians

A class of cold-blooded vertebrates that includes frogs, toads, salamanders, and newts, which typically have a lifecycle divided between aquatic larval stages and terrestrial adult stages.

Reptiles

A class of cold-blooded, scaly vertebrates that breathe air through lungs, including snakes, lizards, turtles, and crocodiles.

Morphological Structures

The form and structure of organisms or specific parts of an organism, often used in the context of biology to describe the physical shape and size of various aspects.