In the Neoclassical Growth Theory, Economic Growth Eventually Stops After

question 81

Multiple Choice

In the neoclassical growth theory, economic growth eventually stops after a technological advance when

• A)the return on capital falls and the incentive to invest weakens.
• B)knowledge capital is replicated.
• C)the subsistence real wage rate falls.
• D)the real wage rate increases.
• E)high population growth occurs.

---

Definitions:

Percentile

A value below which a given percentage of observations in a group of observations fall.

Percentile

A statistical measure indicating the value below which a given percentage of observations in a group of observations fall.

Percentile

A measure used in statistics indicating the value below which a given percentage of observations in a group of observations falls.

Normal Model

A bell-shaped frequency distribution graph where the bulk of the values lie close to the mean, used in many statistical analyses to describe data sets.