The New Growth Theory Holds That Growth Can Persist Indefinitely

question 47

Multiple Choice

The new growth theory holds that growth can persist indefinitely based on the major assumption that

• A)discoveries result from regulations.
• B)knowledge capital does not experience diminishing returns.
• C)knowledge is a public capital good.
• D)discoveries bring profit.
• E)knowledge destroys profit.

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Definitions:

Essential Operations

Core activities necessary for an organization or system to function effectively.

Minimizes Costs

Strategies or actions taken to reduce expenses and financial outlay in business operations or personal budgeting.

Efficiency

The ability to achieve a desired result with minimal waste of time, effort, or resources.

Quality Improvement

An ongoing process of detection and reduction of errors, improvement of operations, and ensuring that standards of quality are met consistently.