The Schumpeterian R&D model of technological progress suggests that, all other things equal:
A) large countries grow faster than small countries only if they are open to free trade.
B) small countries grow faster than large countries regardless of their trade policies.
C) large countries grow faster than small countries.
D) large countries will always grow slower than small countries.

Question

Quizplus · Accepted Answer

The Schumpeterian R&D model of technological progress suggests that larger countries are more likely to have more resources and a larger market to support the necessary investment in research and development, leading to faster technological progress and economic growth. However, this growth is also dependent on policies that support free trade and innovation. Therefore, large countries may grow faster than small countries, but only if they adopt appropriate policies to support innovation and trade.

The Schumpeterian R&D Model of Technological Progress Suggests That, All