The role of the entrepreneur becomes much more important in the new growth theory - the endogenous growth model-than in the traditional economic growth mode because
A. Entrepreneurs supply the funds for capital accumulation int he new growth theory.
B. In the traditional growth model, economic growth is caused by an increase in the labor force growth rate.
C. The traditional growth theory focuses on capital accumulation but the new growth theory does not
D. In the new growth theory, entrepreneurs play a key role in the development and adoption of new and sometimes untried technologies
Answer: D. In the new growth theory, entrepreneurs play a key role in the development and adoption of new and sometimes untried technologies
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Since the 1930s, overall tariff rates in the United States have
A) increased. B) decreased. C) remained unchanged. D) become very unstable, changing week to week.
When economic rent exists
A. resources are allocated efficiently. B. the price is equal to the opportunity cost of the resources. C. price is the same as the discount rate. D. resources are allocated inefficiently.
A realistic production possibilities curve:
A. is concave while a simple PPF has increasing opportunity costs. B. is concave while a simple PPF has constant opportunity costs. C. is straight lined while a simple PPF has constant opportunity costs. D. is straight lined while a simple PPF is bowed outward.
How do economies of scale contribute to the development of an oligopoly?
A) Economies of scale make it legally difficult for new firms to enter. B) Economies of scale make small-scale producers inefficient. C) Economies of scale are based on control of a key resource, without which other firms cannot enter an industry. D) Economies of scale are guaranteed when a patent is granted.