Robert Lucas,a Nobel Laureate in Economics,argues That There Are Increasing

question 43

Multiple Choice

Robert Lucas,a Nobel laureate in economics,argues that there are increasing returns to

• A)knowledge capital.
• B)physical capital.
• C)financial capital.
• D)human capital.

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Definitions:

Depreciation

Depreciation is the accounting process of allocating the cost of tangible assets over their useful lives, reflecting the loss of value as the asset is used.

Capitalized

The process of recording a cost or expense as an asset on the balance sheet, rather than immediately expensing it, typically to spread the cost over its useful life.

Double-Declining-Balance Method

An accelerated depreciation method that doubles the normal depreciation rate, reducing the carrying value of an asset more quickly.