The Neoclassical Growth Model Assumes That with a Given State

question 34

Multiple Choice

The Neoclassical growth model assumes that with a given state of technology,

• A)increases in the use of a single factor bring increasing returns.
• B)increases in the use of a single factor result in constant returns.
• C)increases in GDP are possible only if all factors are increased at an equal rate.
• D)growth in GDP happens only if the labour force grows more quickly than the amount of physical capital.
• E)the standard of living will decrease if the labour force grows more quickly than the amount of physical capital.

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Definitions:

Understanding People

The ability to comprehend the emotions, motivations, and thoughts of others, facilitating effective communication and interpersonal relationships.

Effective Use

The efficient and purposeful utilization of resources or techniques to achieve desired outcomes.

Manage Conflict

The process of identifying and handling conflict in a sensible, fair, and efficient manner.

Satisfied Need

A requirement or desire that has been met or fulfilled.