According to the Endogenous Growth Theory, When a Single fiRm

question 80

Multiple Choice

According to the endogenous growth theory, when a single firm makes an investment that has positive externalities:

• A) productivity will increase across many firms in the economy.
• B) the economy will experience diminishing returns to capital.
• C) a greater proportion of economic output will be needed to renew the existing capital.
• D) the economy will reach a steady state growth rate.

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Definitions:

Optional Elements

Supplementary components that are not necessary for the essential function of a system or process but can enhance its effectiveness or user experience.

Budget

An estimate of income and expenditure for a set period of time.

Early Stages

The initial phases or periods in the development or progression of something.

Monitoring

The process of observing and checking the progress or quality of something over a period of time.