Which of the following statements is likely to be made by someone who believes in the new growth theory?

Question

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The new growth theory emphasizes the role of knowledge and innovation in promoting economic growth. Therefore, someone who believes in this theory is likely to argue that competition stimulates the discovery of new ideas, leading to greater economic growth. Option A is more aligned with the traditional neoclassical growth theory, which suggests that population growth will eventually limit economic growth. Option C is incorrect because the new growth theory suggests that economic growth is sustainable in the long term. Option D is incorrect because investments in human capital are considered essential for promoting economic growth. Option E is also incorrect because new growth theory emphasizes the importance of technological progress in promoting economic growth, and it assumes that technological changes are not random but a result of deliberate investments in research and development.

Which of the Following Statements Is Likely to Be Made