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a. In the neoclassical growth model, there are diminishing returns to physical capital and diminishing returns to human capital. But there are constant returns to
a. In the neoclassical growth model, there are diminishing returns to physical capital and diminishing returns to human capital. But there are constant returns to scale. Hence, the economy can grow forever by accumulating both kinds of capital without ever facing diminishing returns. Comment the various aspects of this statement. b. Discuss the \"rivalry\" and "excludability" properties of each of the following goods. - a. An aspirin - b. The formula to produce aspirin - c. CableTV - d. Lobsters in the Atlantic Ocean - e. Acow in a farm - f. A zoom meeting - g. A grilled cheese sandwich - h. The Pythagoras theorem - i. The Solow model
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