The New Growth Theory Holds That Growth Can Persist Indefinitely

question 47

Multiple Choice

The new growth theory holds that growth can persist indefinitely based on the major assumption that

• A)discoveries result from regulations.
• B)knowledge capital does not experience diminishing returns.
• C)knowledge is a public capital good.
• D)discoveries bring profit.
• E)knowledge destroys profit.

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Definitions:

Unemployed Category

A classification used in labor statistics to describe individuals who are not currently employed but are actively seeking employment.

Not in the Labor Force

Individuals not in the labor force are those who are not seeking employment and are not currently employed, including retirees, students, and homemakers.

Employed Category

A classification within the labor force that includes all individuals who are gainfully employed, either in full-time or part-time positions.

Employed Category

A classification used in labor statistics that includes individuals who are currently working for pay or profit, or as unpaid workers in a family business.