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.

---

Definitions:

Power Center

A retail location consisting of a huge shopping strip with multiple anchor (or national) stores.

Regional Shopping Center

A retail location consisting of 50 to 150 stores that typically attract customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores.

Strip Mall

A retail location consisting of a cluster of neighborhood stores to serve people who are within a 5- to 10-minute drive.

Central Business District

The oldest retail setting, usually located in the community’s downtown area.