In contrast to the earlier neoclassical models of economic growth, in endogenous growth models, there is more emphasis on
A)human capital.
B)externalities.
C)increasing returns to scale.
D) All of the above.

Question

Quizplus · Accepted Answer

Endogenous growth models emphasize the role of human capital, externalities, and increasing returns to scale in driving long-term economic growth. These models recognize the importance of knowledge, technology, and innovation in promoting economic progress, and highlight the potential benefits of investment in education, research and development, and new technologies. Unlike neoclassical models that assume diminishing returns to capital, endogenous growth models suggest that there are feedback mechanisms and positive spillover effects that can generate sustained and accelerating growth over time. Therefore, the correct answer is D, as all of the above factors are emphasized in endogenous growth models.

In Contrast to the Earlier Neoclassical Models of Economic Growth