An Assumption of the Neoclassical Theory of Growth Is That

question 48

Multiple Choice

An assumption of the neoclassical theory of growth is that

• A) people receive only subsistence real GDP per person.
• B) all technological advances are the result of chance.
• C) the marginal product of all types of capital increases as more capital is accumulated.
• D) knowledge has diminishing returns.

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Definitions:

Simple Effect

The effect of one variable at a specific level of another variable in a factorial experiment.

Interaction Effect

In statistics, the effect that exists when two or more variables combine to affect the outcome of a dependent variable in a way that cannot be simply added.

Main Effect

In experimental design, a main effect is the direct impact of an individual independent variable on a dependent variable, ignoring the effects of other variables.

Simple Effect

The effect of one factor at a specific level of another factor in a factorial design experiment.