All of the Following Are Important Sources of Growth Except

question 17

Multiple Choice

All of the following are important sources of growth except:

• A)institutions with incentives compatible with growth.
• B)technological development.
• C)decreasing returns to scale.
• D)capital accumulation.

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Definitions:

Annual Interest Rate

The annual interest rate is the percentage of interest that is charged or earned on an investment or loan over a one-year period.

Gross Investment

The total amount spent on purchasing or building new fixed assets and on replacing old assets, without deducting for depreciation.

Net Investment

The total amount spent on capital assets (like plant and equipment) minus depreciation, reflecting the actual increase in an entity's productive capacity.

Depreciation

The process of allocating the cost of tangible assets over their useful lives, reflecting the decrease in value of assets due to use, wear and tear, or obsolescence.