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Which of the Following Statements About the Enhanced Two-Sector Solow

Question 32

Multiple Choice

Which of the following statements about the enhanced two-sector Solow model is false?


A) Technology can always shift the production function to higher levels in the economic sphere, even when the natural sphere is not maintained.
B) Only up until a certain point in the growth of output are nature's services able to replenish those services for free.
C) Some saving and investment in the economic sphere must be transferred to investment in conservation in the natural sphere to have sustainable growth.
D) A shift in savings and investment out of the economic sphere and into nature's sphere will slow economic growth.

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