A key characteristic of the production function in the endogenous growth model presented in the text is that
A) there are increasing returns to scale in human capital.
B) there are decreasing returns to scale in human capital.
C) there are constant returns to scale in human capital.
D) at low levels of human capital, there are increasing returns to scale in human capital, while at high levels of human capital, there are decreasing returns to scale in human capital.
C
You might also like to view...
A boom is:
A. a period in which the economy is growing at a rate significantly below normal. B. the high point of economic activity prior to a downturn. C. a particularly strong and protracted expansion. D. a particularly severe and protracted recession.
The figure above shows the market for airline tickets. In early 2008 the price of jet fuel rose. This change is shown in the figure as a shift from
A) D0 to D1. B) D1 to D0. C) S0 to S1. D) S1 to S0.
Population grew prodigiously during the colonial period. What was/were the most important factor(s) fueling this increase?
(a) Immigration (b) Relatively low mortality and high birth rates (c) Relatively high mortality combined with high birth rates (d) Immigration and high birth rates
An expansionary fiscal policy will
A) always result in a budget deficit. B) always result in a budget surplus. C) sometimes result in a budget deficit. D) never result in a budget surplus. E) More information is necessary to answer this question.