Explain how the "new growth theory" treats technology differently from the way economists used to treat technology
What will be an ideal response?
Technology used to be treated as an outside factor of growth that could not be explained itself. The new growth theory includes technology as another factor of production and argues that the greater the reward to technology the greater will be technological advance. Firms engage in research and development activity with the expectations of increasing their profitability.
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Property rights are limited to tangible items such as land and machinery
Indicate whether the statement is true or false
When the dollar depreciates, the prices of imported inputs
a. fall and aggregate supply shifts outward. b. fall and aggregate supply shifts inward. c. rise and aggregate supply shifts outward. d. rise and aggregate supply shifts inward.
One of the conditions under which price discrimination is profitable is:
A. ability to identify consumer types. B. differences in demand elasticities. C. inability to resell the good. D. All of the statements associated with this question are correct.
A command-and-control policy:
A. is unlikely to have any impact on the amount of pollution emitted. B. does not affect the production costs of firms. C. usually finds the most efficient pollution abatement technology. D. decreases the incentive for firms to develop efficient abatement technologies.