Which of the Following Is True About 'New Growth Theory

question 47

Multiple Choice

Which of the following is true about 'new growth theory'?

• A)It states that the rate of technological change is determined outside the working of the market system.
• B)It does not adequately explain the factors that determine productivity.
• C)It states that the rate of technological change is unaffected by economic incentives.
• D)It states that the rate of technological change is caused by economic incentives.

---

Definitions:

Perfectly Elastic

A situation in which any small change in price leads to an infinite change in quantity demanded or supplied.

Payroll Tax

Charges instituted on both employers and workers, typically a percentage of the employment remunerations.

Tax Burden

the measure of the total taxes imposed on individuals or businesses by the government.

Payroll Tax

Taxes imposed on employers and/or employees, typically based on the wages or salaries that employees earn.