Two-Sector Endogenous Growth Model Quiz

Saving rate exceeds the rate of depreciation.

Fraction of the labor force in universities is large.

Creation of knowledge in universities never slows down. (correct)

Production function shifts exogenously.

Increased investment in physical capital.

Continuous creation of knowledge in universities. (correct)

High level of government spending.

Technological advancements in the production sector.

Prominence of knowledge creation in universities. (correct)

Presence of multiple production sectors.

High level of international trade.

Emphasis on environmental sustainability.

<p>Significant presence in universities for knowledge creation.</p> Signup and view all the answers

<p>Nonstop innovation and research in universities.</p> Signup and view all the answers