The Solow Growth Theory of the 1950s Assumed

question 97

Multiple Choice

The Solow growth theory of the 1950s assumed

• A) there was exogenous technological advance.
• B) there was unlimited technological advance.
• C) the steady state did not exist.
• D) only wealthy countries would converge to the steady state.
• E) wealthy countries would continue to experience sustained economic growth.

---

Definitions:

Efficiency

The ability to accomplish a task or produce an output with a minimum amount of waste, expense, or unnecessary effort.

Supervisor Wages

The compensation, often hourly or salaried, paid to individuals in supervisory positions for overseeing the work of others.

Factory

A factory is an industrial site where workers manufacture goods or operate machines processing one product into another, typically involving large-scale production methods and specialized equipment.

Australian Accounting Standards

A set of principles and rules that guide financial reporting and accounting practices in Australia.