Separating Private Returns to Capital from Social Returns to Capital

question 40

Multiple Choice

Separating private returns to capital from social returns to capital, that is, the idea that investment in capital may have positive spillover effects as new ideas and new ways of doing things can be easily copied by others, was first advocated by

• A)Robert Barro
• B)Robert Lucas
• C)Robert Samuelson
• D)Paul Solow
• E)Paul Romer

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Definitions:

Normal Random Variable

A variable following a normal distribution, characterized by a symmetric bell-shaped curve.

Variance

A measure of the dispersion or spread of a set of data points around their mean value, indicating the degree of variation from the average.

Probability Distribution

A statistical function that defines the possible values and likelihoods that a random variable can take within a given range.

Population Standard Deviation

A measure of the variability or spread in a population data set.