New growth theory
A)states that the rate of technological change is determined outside the working of the market system.
B)does not adequately explain the factors that determine productivity.
C)states that the rate of technological change is caused by economic incentives.
D)states that the rate of technological change is unaffected by economic incentives.
E)states that the rate of capital accumulation determines the rate of economic growth.

Question

Quizplus · Accepted Answer

New growth theory states that the rate of technological change is caused by economic incentives, such as profit opportunities or intellectual property rights, incentivizing businesses to invest in research and development to create new technologies.

New Growth Theory