According to new growth theory
A)physical capital is nonexcludable.
B)knowledge capital is excludable.
C)knowledge capital is subject to increasing returns.
D)knowledge capital is rival and excludable.
E)knowledge capital can be exhausted by advanced economies.

Question

Quizplus · Accepted Answer

According to new growth theory, knowledge capital is subject to increasing returns, meaning that as more people use and develop it, its value increases. This is because knowledge capital is nonrival, meaning that it can be used by many people at the same time. Unlike physical capital, which is rival and can be exhausted, knowledge capital can be shared and expanded upon indefinitely. Additionally, knowledge capital is not excludable, meaning that it cannot be easily kept exclusive to one person or group.

According to New Growth Theory