New growth theory emphasizes the importance of all of the following except:
A)positive externalities.
B)diminishing marginal productivity.
C)technology.
D)learning by doing.

Question

Quizplus · Accepted Answer

New growth theory focuses on factors that lead to long-term economic growth through innovation, knowledge, and technology. It emphasizes positive externalities, technology, and learning by doing as key drivers of growth. Diminishing marginal productivity is a concept more associated with traditional neoclassical models, where it is used to describe the decrease in the marginal output of a production process as the amount of a single factor of production is incrementally increased, holding all other factors constant. This concept does not align with the core principles of new growth theory, which suggests that through innovation and knowledge accumulation, economies can potentially overcome the constraints of diminishing returns.

New Growth Theory Emphasizes the Importance of All of the Following