The Neoclassical Growth Model Assumes That,with a Given State of Technology,increases

question 22

Multiple Choice

The Neoclassical growth model assumes that,with a given state of technology,increases in the use of a single factor will eventually

• A)increase the average product of the factor.
• B)decrease the average product of the factor.
• C)lead to an increase in the marginal output of the factor.
• D)lead to a decrease in total output by the factor.
• E)lead to an increase in the material standard of living.

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Definitions:

Empiricism

A philosophical standpoint emphasizing evidence-based knowledge acquired through observation and experimentation.

Falsifiability

A principle stating that for a hypothesis to be scientifically valid, it must be possible to conceive an observation or an argument which could negate it.

Intuition

The ability to understand or know something immediately, based on feelings rather than facts.

Cognitive Biases

Systematic patterns of deviation from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.