In the Discussion on Growth in Chapter 2, the Following

question 11

Multiple Choice

In the discussion on growth in Chapter 2, the following is mentioned. "The new theory of economic growth has been criticized for a certain naïveté regarding knowledge. Is it truly so that the mere existence of knowledge means that knowledge will diffuse?" What is this referring to? One, two or three of the following are correct. Which?

• A) that it is thought that "if there is knowledge, it will be used," more or less automatically
• B) that knowledge is an essential but not sufficient ingredient in the growth equation
• C) that there is no sequential and obvious line between knowledge, commercialization and growth

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Definitions:

Lower Of Cost

A accounting principle that mandates reporting the cost of inventory and other assets at the lower of their original cost or current market value.

Generally Accepted Accounting Principles

The standard framework of guidelines for financial accounting used in any given jurisdiction; generally known as GAAP.

Lower Of Cost

An accounting principle requiring inventory to be recorded at the lower of its historical cost or market value.

Market

A venue or mechanism where buyers and sellers engage in the exchange of goods, services, or financial instruments.