According to Economic Growth Theory, If the Spread of Technology

question 131

Multiple Choice

According to economic growth theory, if the spread of technology is not difficult, we would expect

• A)countries with lower productivity to adopt newer technology and raise their productivity.
• B)countries with high levels of income per capita to continue growing faster than countries with low incomes per capita.
• C)the elimination of diminishing returns to labor.
• D)an increase in the diminishing returns to capital.
• E)the elimination of diminishing returns to capital.

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Definitions:

Price Policy

A strategy adopted by a company or government to set the sale price of goods or services, often to regulate market behavior or achieve economic objectives.

Market Power

The ability of a company or group to manipulate or control prices and output in a market.

Intense Competition

A market situation characterized by a high level of rivalry among businesses, often leading to innovations and lower prices for consumers.

Entry-Restricting Legal Barriers

Regulations and legal requirements that limit the ability of new competitors to enter an industry.