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The Neoclassical Growth Model Assumes That, with a Given State

Question 34

Multiple Choice

The Neoclassical growth model assumes that, with a given state of technology, increases in the use of a single factor eventually cause the


A) marginal product of the factor to fall.
B) average product of the factor to increase.
C) material standard of living to increase.
D) marginal product of the factor to increase but at a decreasing rate.
E) marginal product of the factor to increase at an increasing rate.

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