The Solow Residual refers to the:
A) obsolete products left in a market due to accelerated product life cycles.
B) less developed nations of the world being left behind due to their obsolete technology.
C) increased amount of output achievable from a given quantity of labor and capital due to technological innovation.
D) process of dumping goods in developing and underdeveloped countries at a price lower than the home-market price.

Question

Quizplus · Accepted Answer

The Solow Residual refers to the increase in output that cannot be explained by increases in labor and capital inputs alone. It is typically attributed to technological innovation and increased efficiency in the use of factors of production. Option A refers to obsolescence, which is not related to the Solow Residual. Option B is a vague and incorrect statement, while option D refers to dumping, which is also unrelated to the Solow Residual.

The Solow Residual Refers to The