One of the Shortcomings of the Solow Growth Model Is

question 73

Multiple Choice

One of the shortcomings of the Solow growth model is that in it the rate of technological change is

• A)assumed to be zero.
• B)assumed to be equal to the population growth rate.
• C)left unexplained.
• D)zero unless the saving rate exceeds the depreciation rate.

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Definitions:

Enacted Norms

Norms that are established through actions and behaviors rather than formally written or spoken; they evolve from a group's habits.

Custom

Established practices or behaviors that are traditional and widely accepted within a specific culture or society.

Individualism/Collectivism

Refers to a cultural dimension that emphasizes the degree to which individuals are integrated into groups, with individualism favoring personal autonomy and collectivism emphasizing interdependence.

Uncertainty Avoidance

A cultural dimension describing the extent to which societies tolerate ambiguity and uncertainty, influencing their norms, behaviors, and decision-making processes.