Neoclassical Growth Theory Assumes That Technological Advances

question 171

Multiple Choice

Neoclassical growth theory assumes that technological advances

• A) have a direct relationship to the level of real income per capita.
• B) can eliminate diminishing returns of labor and capital.
• C) are negative if there is a subsistence level of real income but positive otherwise.
• D) result from chance.
• E) occurs only when firms can profit from it.

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Definitions:

Encumbrances

Legal claims or liabilities attached to property that can affect its use, value, or transferability, such as mortgages or liens.

Discharging

The act of releasing someone from an obligation, such as a debt, duty, or legal liability, often through the payment or fulfillment of what is owed.

Purchase Agreement

A legal document outlining the terms and conditions under which a sale of property will take place.