Because There Are No Diminishing Returns in the Stock of Ideas

question 6

Multiple Choice

Because there are no diminishing returns in the stock of ideas in the Romer model:

• A) old ideas continue to contribute to current economic growth.
• B) economic growth cannot be sustained forever.
• C) the economy eventually reaches a steady state.
• D) economic growth eventually slows.
• E) new ideas must be continually created.

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Definitions:

Effector

A part of the body, such as a muscle or organ, that produces a response when stimulated by a nerve impulse.

Interneuron

Neuron located within the central nervous system that conveys messages between parts of the central nervous system.

Stroke

Condition resulting when an arteriole in the brain bursts or becomes blocked by an embolism; cerebrovascular accident.