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According to the "New" Theories of Economic Growth, Increasing Marginal

Question 47

Multiple Choice

According to the "new" theories of economic growth, increasing marginal returns to capital investment is


A) impossible because diminishing returns are unavoidable.
B) impossible, and is thus a weak source of growth.
C) possible after initial fixed costs of innovation have been borne.
D) possible only if the capital is government- owned infrastructure.
E) possible, but only in the early stages of innovation before imitators rush in to drive prices down.

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