The idea that additional spending on research and development will produce additional knowledge that may further increase the productivity of capital is an argument used by some economists to claim that knowledge is subject to ________ returns.

Question

Quizplus · Accepted Answer

The argument presented in the statement suggests that additional spending on research and development will lead to an increase in knowledge, which in turn will increase the productivity of capital. This implies that knowledge is subject to increasing returns, as the more knowledge is obtained, the more productive the capital becomes.

The Idea That Additional Spending on Research and Development Will