An Important Foundation of the New Growth Theory Is That

question 179

Multiple Choice

An important foundation of the new growth theory is that

• A) improvements in labor productivity are poor measures of technological growth.
• B) the growth rate of the capital stock is more important than the growth rate of new knowledge in generating economic growth.
• C) we will get more technological advances the greater the rewards people receive from making technological advances.
• D) we will get more technological advances the more the government is involved in deciding which technology to pursue.

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Definitions:

Framing Error

A mistake made in how problems, solutions, or decisions are presented or conceptualized, potentially leading to poor outcomes.

Resistance to Change

Opposition or pushback from individuals or groups within an organization towards initiatives, policies, or changes perceived as harmful or unnecessary.

Sucker Trap

A situation where an individual or group is easily deceived or manipulated into a disadvantageous position.

Short-Term Thinking

A focus or emphasis on immediate gains or results, often at the expense of long-term benefits.