A Key Characteristic of the Production Function in the Endogenous

question 33

Multiple Choice

A key characteristic of the production function in the endogenous growth model presented in the text is that

• A) there are increasing returns to scale in human capital.
• B) there are decreasing returns to scale in human capital.
• C) there are constant returns to scale in human capital.
• D) at low levels of human capital, there are increasing returns to scale in human capital, while at high levels of human capital, there are decreasing returns to scale in human capital.
• E) there are substantial diminishing marginal returns to human capital.

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