In the figure above, a decrease in the quantity of oil supplied ...

[mpobi80]

In the figure above, a decrease in the quantity of oil supplied but NOT a decrease in the supply of oil is shown by a movement from
 
  A) point a to point e.
  B) point a to point b.
  C) point a to point c.
  D) point a to point d.

Question 2

How does the new growth theory explain economic growth?
 
  What will be an ideal response?

[chinwesucks]

Answer to Question 1

C

Answer to Question 2

The new growth theory explains growth as the result of choices made in the pursuit of profit. If people choose to look intensively for new technologies they will be found more quickly. Profit is the motive to look for technological change. The reason is that competition squeezes profits. Firms are constantly looking for ways to reduce costs and increase profits through technological change. The economy can grow forever as long as people make the choices that encourage the search for new technologies.

[mpobi80]

TYSM

[hramirez205]

Thanks for the timely response, appreciate it