In the Two-Sector Endogenous Growth Model, Income Growth Persists Because

question 4

Multiple Choice

In the two-sector endogenous growth model, income growth persists because:

• A)the production function shifts exogenously.
• B)the saving rate exceeds the rate of depreciation.
• C)the creation of knowledge in universities never slows down.
• D)the fraction of the labour force in universities is large.

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Definitions:

Extinction

In psychology, the gradual weakening and disappearance of a conditioned response tendency; in biology, the dying out of a species.

Commission

An instruction, command, or duty given to a person or group of people.

Fixed-ratio Schedule

This is a schedule of reinforcement where a response is rewarded only after a specified number of responses.

Operant Conditioning

A learning process where behavior is controlled by consequences, including reinforcements and punishments to increase or decrease the behavior's occurrence.