Question

Schumpeterian growth focuses on:______. a. capital formation (i.e., more physical capital) as central to economic growth.b. arguing that diminishing returns to capital are overstated .c. the role of cities as central to economic growth.d. the role of technological innovation and entrepreneurs as central to economic growth. e. market expansion as central to economic growth.

Answer 1

Answer:

Option D The role of technological innovation and entrepreneurs as central to economic growth.

Explanation:

The reason is that these generate value of the country's product due to its uniqueness and preferable services provision which means that the exports of the product will grow and the domestic sales will also grow if the product is innovative. Innovations brings the demand because nowadays the fight is not on the borders the fight among countries is generating heavy amount of reserves through increase in exports. And this growth in economy is only possible if the country's products are produced efficiently on the international market which is only possible if the innovation has decreased the cost of producing the products or the products produced are efficient.