An Assumption of the New Growth Theory Is That

question 48

Multiple Choice

An assumption of the new growth theory is that

• A)the growth rate of labour productivity depends on people's ability to innovate.
• B)the marginal product from all types of capital increases as more capital is accumulated.
• C)all technological advances are the result of chance.
• D)people earn a subsistence real wage in the long run.
• E)technological advances encourage international trade.

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Definitions:

Sensory Neuron

A type of neuron that transmits signals from sensory receptors towards the central nervous system, allowing perception of stimuli.

Radial Nerve

A nerve that extends down the arm and is responsible for innervating the posterior portion of the upper limb.

Deltoid

A large, triangular-shaped muscle covering the shoulder joint, responsible for arm abduction.

Triceps Brachii

A muscle located at the back of the upper arm, responsible for extension of the elbow joint.