An Assumption of the Neoclassical Growth Theory Is That

question 29

Multiple Choice

An assumption of the neoclassical growth theory is that

• A)people earn a subsistence real wage in the long run.
• B)technological advances are the result of chance.
• C)the marginal product of all types of capital increases as more capital is accumulated.
• D)discoveries are a public capital good.
• E)encouraging international trade increases economic growth.

---

Definitions:

Lifetime Stages

The distinct phases of an individual's life as conceptualized in psychology and sociology, including infancy, childhood, adolescence, adulthood, and old age, each with its unique challenges and developments.

Sensorimotor Stage

The first stage in Piaget's theory of cognitive development, spanning from birth to about 2 years old, where infants learn about the world through their senses and motor activities.

Cognitive Development

the construction of thought processes, including recalling, problem-solving, and decision-making, from childhood through adulthood.

Low-SES Families

Refers to families with low socioeconomic status, characterized by limited income, education, and occupational prestige.