The Production of New Ideas in the Romer Model Is

question 79

Multiple Choice

The production of new ideas in the Romer model is:

• A) increasing in the efficiency of creating knowledge and the fraction of labor in research and development.
• B) decreasing in the efficiency of creating knowledge and increasing the fraction of labor in research and development.
• C) increasing in the efficiency of creating knowledge and decreasing in the fraction of labor in research and development.
• D) increasing in the population growth rate and capital accumulation.
• E) decreasing in the efficiency of creating knowledge and in the fraction of labor in research and development.

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Definitions:

Medium Of Exchange

Anything that facilitates trade by being generally accepted by all parties in payment for goods or services.

Facilitates Trade

Actions or policies designed to make trade between countries or parties easier, typically through reducing barriers such as tariffs and quotas.

Barter

The direct exchange of one product for another without using money.

Medium Of Exchange

Anything that is widely accepted as a means for the payment of goods and services and repayment of debts.