According to new growth theory, per capita growth is:
A. limited by learning by doing.
B. limited by diminishing marginal productivity.
C. unlimited if production is characterized by increasing returns to scale.
D. unlimited if production is characterized by constant marginal productivity.
Answer: C
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Suppose a pizza restaurant has two pizza ovens that may be used to bake pizzas, so the restaurant has a maximum capacity constraint that affects the shape of the firm's short-run marginal cost curve
What happens to maximum capacity segment of this curve if the firm adds another pizza oven? A) Shifts upward B) Shifts downward C) Shifts leftward D) Shifts rightward
Fixing a payment schedule in an agreement:
a. allows the seller to easily access loanable funds. b. increases the uncertainty associated with the cost of production. c. allows the seller to charge a high price for his product. d. ensures the delivery of goods at a high price.
Growth in employment can result
a. from an increase in labor supply only b. from an increase in labor demand only c. from changes in technology only d. from an increase in either labor supply or labor demand e. only when the wage rate falls
Leverage is essential to a bank's profitability but it also increases risk
a. True b. False Indicate whether the statement is true or false