According to the new growth theory
A) technology should be considered as a factor of production.
B) technology plays a minor role in economic development.
C) technology provides few rewards to the society.
D) technology is a natural by-product of invention.

Question

Quizplus · Accepted Answer

The new growth theory emphasizes the role of technology as a factor of production and considers it as a key driver of long-term economic growth. It argues that investments in research and development, education, and innovation can lead to technological advancements that enhance productivity and increase economic output. Therefore, technology should be considered a crucial factor of production in the new growth theory.

According to the New Growth Theory