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The Diminishing Marginal Product of Capital Implies

Question 6

Multiple Choice

The diminishing marginal product of capital implies


A) that as nations become poorer, the marginal product of capital declines
B) that an extra machine generates less extra output in a country with little capital than in a country with much capital
C) that additions to the capital stock produce more incremental output in poor countries than in rich countries
D) that wealthy economies will continue to grow richer while poor countries become poorer
E) a failure on the part of a nation's investors to replace depreciated capital equipment

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