Question

Capital has diminishing returns in the Solow model, but ideas do not have diminishing returns in the Romer model because Group of answer choices capital is scarce, but new ideas are not scarce. capital is a rival object, but ideas are non-rival. capital depreciates because it is a physical object, but ideas cannot depreciate because they cannot physically break over time. capital is excludable, but ideas are non-excludable.

Answer 1

capital is a rival object, but ideas are non-rival.

Step-by-step explanation:

• The ideas are non rivalrous and have no restrictions on their return.