In the Romer Model,the Production Function

question 90

Multiple Choice

In the Romer model,the production function
,where
Is knowledge and
Is the amount of labor in the output sector,

• A)exhibits constant returns to labor and increasing returns to labor and knowledge.
• B)exhibits constant returns to labor and increasing returns to knowledge.
• C)exhibits increasing returns to labor and constant returns to labor and knowledge.
• D)exhibits decreasing returns to labor and constant returns to labor and knowledge.
• E)exhibits increasing returns to labor and increasing returns to labor and knowledge.

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Definitions:

Purchase Price

The amount of money paid to acquire a product or service.

Net Value

The actual worth or value of an entity after subtracting liabilities from its assets, often reflecting the financial health and stability of a business or investment.

Tangible Assets

Physical assets that have a defined monetary value and can be touched or seen, such as machinery, buildings, and vehicles.

Tangible Asset

Assets that have physical substance and can be touched, such as machinery, buildings, and land.