2) Knowledge capital is nonrival in the sense that. c. military spending. Sciences, Culinary Arts and Personal answered Jul 4, 2016 by Pride . 0 votes. companies create new innovative products for local consumption and export the surplus in order to serve also the foreign markets. technology. Flag Content. The factors of production include land, labor, entrepreneurship, and capital. Rather, it depends on the number of people seeking out new innovations or technologies and how hard they are looking for them. 86) According to new growth theory, firms accumulate the efficient level of both physical and knowledge capital. In some ways, the enterprise lets them function like startups being incubated inside the organization. D)knowledge capital is rival and excludable. According to Malthus, two types of checks can keep the population growth in line with its food supply before and after the point of crisis is reached: (1) preventive checks and (2) positive checks. 85) Technological change allows the economy to produce more output with the same amount of capital and labor. b. patents should be revoked so that all can share the benefits of new technology. Endogenous growth theories – Rate of economic growth strongly influenced by human capital and rate of technological innovation. 1) Preventive Checks. These will be divided into two main groups: adoption models and invention models. The new growth theory extends the neoclassical theory by making the rate of technological progress or rate of population growth or both as endogenous factors. Achieving such knowledge-driven growth requires a sustained investment in human capital. Multiple Choice . Question: According To New Growth Theory, The Driving Force Of Economic Growth Is 0 A, The Expansion Of A Country's Highway System O B. According to the new growth theory A. patents should be revoked so that all can share the benefits of new technology. Conclusion In this study, we mainly focused Smith’s views on the determinants of economic growth by comparing other growth theories. This can create an environment for skilled professionals to have an opportunity to not only fulfill their primary jobs but also explore the creation of new services that can be of benefit and use to the broader public. Question According to new growth theory, the primary source of growth is: entrepreneurship. population growth it never really muttered what the government did", The new growth theory docs not simply criticize the neo-classical growth theory. C)knowledge capital is subject to increasing returns.   First, it views technological progress as a pr oduct of economic activity. 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