Which of the Following Statements Is True About New Growth

question 10

Multiple Choice

Which of the following statements is true about new growth theories and the Solow and Harrod-Domar models?

• A) Both underline the importance of factor accumulation and productivity in the growth process.
• B) Both treat technology as endogenous.
• C) Both take externalities into account.
• D) Both assume increasing returns to scale.

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Definitions:

New Southern Class

Refers to a social or economic stratum that emerged in the American South, often in the context of post-Civil War social restructuring and economic development.

Railroads

Transportation systems using trains running on tracks, crucial for the movement of goods and people, and integral to the development of industries and settlements.

Ex-Slaves

Individuals who were formerly enslaved but have gained freedom, often through abolition or emancipation movements.