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A key assumption of the Solow Growth Model is that: (a) the marginal product of capital diminishes as additional units of capital are added; (b) output per capita declines as a nation's capital to labor ratio increases; (c) the marginal product of labor tends to rise as additional units of labor are added; (d) capital tends to depreciate at an increasing rate as a nation's output increases.
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
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