All of the Following Statements Are Included in New Growth

question 5

Multiple Choice

All of the following statements are included in new growth theory except

• A)discoveries are a public capital good.
• B)discoveries result from choices.
• C)the forces of competition destroy incentives to make new discoveries.
• D)discoveries bring profit, and competition destroys profit.
• E)knowledge is capital that is not subject to the law of diminishing returns.

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Definitions:

Operating

Refers to the activities and processes carried out by a company in its day-to-day business to generate income, excluding investing and financing activities.

Nonoperating

Items on a financial statement that are unrelated to the core operations of the business, such as investment income or losses.

Financial Activities

Transactions related to the financing of a company, including issuing debt, repaying debt, equity financing, and paying dividends.

Financing Activities

Cash flow activities that result in changes in the size and composition of the equity capital and borrowings of an entity.