1. The growth model in which capital accumulation plays the key role is called t

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Question

1. The growth model in which capital accumulation plays the key role is called the:

A- Classical growth model.

B- new growth model.

C- Keynesian model.

D- new Classical growth model.

2 .Technological development:

A- alters the nature of production and consumption.

B- makes it impossible to obtain more of the same things.

C- does not depend on institutions.

D- does not depend on economic incentives.

3. The law of diminishing marginal productivity implies that increasing only one input will:

A- lead to larger and larger increases in output.

B- lead to smaller and smaller increases in output.

C- lead to identical increases in output.

D- not increase output.

1. A is correct

Classical growth model assumes that capital accumulation is the main source of growth.

2. A is correct

Technology development allows to produce and consume more of the good without increasing input or natural resources.

3. B is correct

Law of diminishing marginal productivity says that marginal product increases at a decreasing rate resulting in smaller increases in output.

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