The models of endogenous technological progress usually predict that:
A) population growth causes economic growth to decline.
B) population growth hinders technological progress by reducing the capital-labor ratio.
C) population growth enhances economic growth.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

Endogenous technological progress models suggest that population growth can enhance economic growth by increasing the number of inventors and researchers, leading to more innovations and technological improvements. This is because a larger population can provide a larger pool of potential innovators and can benefit from economies of scale, allowing for greater specialization and knowledge-sharing. Additionally, population growth can lead to greater demand for goods and services, providing an incentive for firms to invest in new technologies to meet this demand. Therefore, option C is the best choice as it aligns with the predictions of endogenous technological progress models.

The Models of Endogenous Technological Progress Usually Predict That