An Important Foundation of the New Growth Theory Is That

question 113

Multiple Choice

An important foundation of the new growth theory is that

• A) we will get more technological advances the more the government is involved in deciding which technology to pursue.
• B) we will get more technological advances the greater the rewards people receive from making technological advances.
• C) the growth rate of the capital stock is more important than the growth rate of new knowledge in generating economic growth.
• D) improvements in labor productivity are poor measures of technological growth.

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Definitions:

Scale and Mix of Operations

Refers to the size, scope, and combination of processes or activities carried out within an organization to produce goods or deliver services.

Differentiation Strategy

Differentiation strategy is a marketing approach in which a company develops and promotes products that distinguish themselves from those of competitors on the basis of attributes like design, quality, or performance.

Competitive Advantage

The unique attributes or circumstances that allow an organization to outperform its competitors, either through lower costs, better quality, or distinctive products or services.

Distinguishing Products

The process of identifying unique characteristics and benefits of products to differentiate them from competitors in the market.