The new endogenous growth theory concludes that sustained economic growth in a country comes from the interaction of labor,investments in physical and human capital,and what is perhaps the key ingredient:
A)natural resources.
B)the production of ideas.
C)post-secondary education within that country.
D)immigration into that country.

Question

Quizplus · Accepted Answer

The production of ideas is the key ingredient according to the new endogenous growth theory. Labor, investments in physical and human capital are important, but they alone cannot lead to sustained economic growth. Natural resources can be a factor, but they are not the key ingredient. Post-secondary education and immigration can contribute to economic growth, but they are not the key ingredient either.

The New Endogenous Growth Theory Concludes That Sustained Economic Growth