Growth Eventually Stops in Neoclassical Growth Theory When

question 25

Multiple Choice

Growth eventually stops in neoclassical growth theory when

• A)population growth lowers the real wage rate.
• B)discoveries are replicated.
• C)saving increases.
• D)the return on capital increases.
• E)technology stops advancing.

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Definitions:

Internal Locus

This concept describes individuals who believe they have control over their life events and outcomes, as opposed to being controlled by external factors.

Creativity

The use of imagination or original ideas to create something; inventiveness.

Tolerance for Ambiguity

The degree to which an individual is comfortable with uncertainty, unpredictability, and unclear situations without becoming overly stressed.

Internal Locus

The belief that one has control over the events in their life, as opposed to external forces being responsible.