Paul Romer's Theory on the Importance of Knowledge Differs from Traditional

question 82

Multiple Choice

Paul Romer's theory on the importance of knowledge differs from traditional theory in that Romer

• A) argues that an investment-knowledge cycle allows a once-and-for-all increase in investment to permanently raise a country's growth rate, while traditional theory argues that a once-and-for-all increase in investment leads to a higher standard of living but not to a higher growth rate.
• B) argues, that investment is not important in promoting growth, but that the acquisition of knowledge is the sole determinant of economic growth.
• C) argues, that an investment-knowledge cycle exists which requires that investment rates keep increasing or else growth rates will fall, while traditional theory argues that growth rates will not fall, although they will not increase either.
• D) emphasizes investment rates while traditional theory emphasizes the importance of knowledge as a factor of production.

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Definitions:

Obscene Phone Calls

Making unwanted or unsolicited sexual or inappropriate comments, threats, or suggestions over the telephone to harass or intimidate the recipient.

Unsuspecting

Not aware of or not suspecting that something, possibly unpleasant or harmful, is happening or will happen.

Sexual Sadism

A condition where individuals experience sexual pleasure from inflicting pain, suffering, or humiliation on others.

Sexual Masochism

A condition where individuals derive sexual pleasure and gratification from experiencing pain or humiliation.