In the Romer Model, with Decreasing Returns to the Knowledge

question 113

Multiple Choice

In the Romer model, with decreasing returns to the knowledge sector:

• A) the number of researchers is irrelevant to long-term per capita income.
• B) more researchers produce more ideas, raising the long-run growth rate of per capita income.
• C) more researchers produce fewer ideas, raising the long-run growth rate of per capita income.
• D) more researchers produce more ideas, raising the long-run level of per capita income.
• E) more researchers cause the knowledge stock to contract.

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Definitions:

Priming

The process by which exposure to a stimulus influences a response to a subsequent stimulus, without conscious guidance or intention.

Savings Method

A technique in psychology to measure the retention of learned material over time by assessing the amount of review required to relearn it.

False Positive

An error in data reporting in which a test result improperly indicates the presence of a condition (like a disease) when it is not actually present.

Eyewitnesses

Individuals who have directly seen an event or crime take place and can provide testimony about what they observed.