Neoclassical Growth Theory Is Based on the Assumption of Marginal

question 73

Multiple Choice

Neoclassical growth theory is based on the assumption of marginal returns to a single factor and returns to scale exhibited by the aggregate production function.

• A)decreasing; constant
• B)increasing; increasing
• C)constant; decreasing
• D)decreasing; decreasing
• E)increasing; constant

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Definitions:

Acre of Land

A unit of area used in the imperial and US customary systems, equivalent to 43,560 square feet, commonly used in measuring parcels of land.

Sofa

A piece of furniture designed for seating multiple people, typically upholstered and used in living rooms or lounges.

Real Property

Land and anything permanently attached to it, such as buildings and improvements.

A Car

A motor vehicle designed primarily for passenger transportation.