A Central Assumption of the Neoclassical Growth Model Is That

question 52

Multiple Choice

A central assumption of the Neoclassical growth model is that

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

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Definitions:

Product Availability

The state of a product being in stock and accessible for purchase by consumers.

Customer Order

A request made by a customer to purchase goods or services from a business.

Available Inventory

The quantity of goods or materials that a company has in stock and is ready for sale or distribution at any given time.

Standard Deviation

A measure of the dispersion or variation in a set of values, indicating how much the values deviate from the mean on average.