The Neoclassical Theory of Economic Growth Led Economics to Be

question 107

Multiple Choice

The Neoclassical theory of economic growth led economics to be referred to as the "dismal science." The explanation for this reference lies in the theory's emphasis on

• A)growing inequality of income.
• B)increasing government intervention in the economy.
• C)increasing damage to the environment.
• D)the immoral behaviour of firms.
• E)diminishing returns in production.

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Definitions:

Factor Of Production

Resources used in the creation of goods and services, traditionally categorized into land, labor, capital, and sometimes entrepreneurship.

Fertilizer

A chemical or natural substance added to soil or land to increase its fertility and enhance plant growth.

Pumpkins

A type of squash plant producing large, typically orange, edible fruits associated with fall festivities and cooking.

Factors Of Production

The economic resources used in the production of goods and services, including land, labor, capital, and entrepreneurship.