According to new growth theory
A) physical capital is nonexcludable.
B) knowledge capital is subject to increasing returns.
C) knowledge capital is rival and excludable.
D) knowledge capital is excludable.
Question 2
Why do convex indifference curve have a negative slope?
A) because to keep utility constant, a consumer must get more of one good if she is to give up some of the other
B) because scarcity implies that it is not possible to consume more of one good without giving up some of the other
C) because consumers take market prices as given
D) because consumers face a budget constraint
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