土豆妮

Which of the following concepts is uniquely associated with the neoclassical theory of economic growth?

A) No diminishing returns to knowledge capital.

B) Real GDP growth.

C) Opportunity cost of having children.

土豆妮

The new growth theory contends that economic growth is a function of which of the following two economic variables?

A) The subsistence real wage and real interest rates.

B) Real interest rates and technological change.

C) The creation of knowledge capital and real interest rates.

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The new growth theory holds that productivity growth is a function of society’s ability to discover new products and methods (i.e., the creation of knowledge capital), and real interest rates.