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:

Statistical Hypothesis Tests

Procedures used to determine whether there is enough evidence in a sample of data to infer that a certain condition is true for the entire population.

Homoscedasticity

A condition in statistical modeling where the variance of the error terms is constant across all levels of the independent variables.

Normality

In statistics, a property describing data sets whose distribution bell-shaped and symmetric about the mean, following the normal distribution pattern.

Multicollinearity

Multicollinearity occurs when independent variables in a regression model are highly correlated, potentially distorting the model's predictions.