A Central Assumption of the Neoclassical Growth Model Is That

question 48

Multiple Choice

A central assumption of the Neoclassical growth model is that

• A)long-run growth arises from correcting market failures.
• B)long-run growth arises only from technological innovation.
• C)there are diminishing marginal returns to a single factor.
• D)there are constant marginal returns to investment.
• E)there are increasing marginal returns to capital investment.

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Definitions:

Lesser Request

A smaller or less significant appeal or petition compared to others.

Comply

To act according to a request, command, or a set of rules.

Deindividuation

A psychological state where an individual in a group loses self-awareness and feels less responsible for their actions, often leading to uninhibited behavior.

Anonymous

Describes actions or statements made without revealing one's identity.