According to new growth theory, economic growth is driven by
A) positive externalities.
B) the division of labor.
C) higher birth rates.
D) new ideas.

Question

Quizplus · Accepted Answer

New growth theory suggests that the primary driver of economic growth is the production and adoption of new ideas and knowledge. This can lead to technological advancements, innovation, and increases in productivity, which can help to stimulate economic growth. Positive externalities can also play a role in supporting economic growth by increasing the social benefits of certain activities or investments. However, ideas and innovation are seen as the primary drivers of prosperity and growth in this framework. The division of labor and higher birth rates can contribute to economic growth in certain contexts, but they are not seen as the primary drivers of growth in new growth theory.

According to New Growth Theory, Economic Growth Is Driven by