Endogenous Growth Models Advocate

question 74

Multiple Choice

Endogenous growth models advocate:

• A) labour force growth and chance inventions to boost productivity.
• B) the use of government policy to develop the economy.
• C) demand-side policies to increase potential GDP and economic growth.
• D) low capital per worker ratios to increase economic growth.

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Definitions:

IRR

Internal Rate of Return, the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Mutually Exclusive

Situations or choices where the acceptance or selection of one necessarily excludes the other(s).

Value Foregone

The benefit given up by choosing one investment or action over another alternative; essentially the opportunity cost of a decision.

IRR

The Internal Rate of Return is a financial measure utilized to calculate the expected profit of prospective investments.