An Assumption of the Neoclassical Theory of Growth Is That

question 101

Multiple Choice

An assumption of the neoclassical theory of growth is that

• A) people receive only subsistence real GDP per person.
• B) knowledge has diminishing returns.
• C) the marginal product of all types of capital increases as more capital is accumulated.
• D) all technological advances are the result of chance.

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Definitions:

Dividend Income

Earnings received from owning shares in a company, typically distributed from the company's profits.

Dividend Income

Income received by shareholders from the profits distributed by a company, usually in the form of cash payments.

Net Loss

The amount by which expenses exceed revenues.

Net Income

The amount of money remaining after all operating expenses, taxes, and dividends have been subtracted from total revenue.