Microeconomics 18th Edition by Campbell McConnell, Stanley Brue, Sean Flynn

Exercise 13

The figure in the Last Word section shows that at 10-fold increase in a country's GDP per person is associated with about a 20-point increase in EPI. Do you think that this pattern can be extrapolated out into the future That is, could the United States (which currently has an EPI of 78.5) gain another 20 points if it increased its GDP per person by a factor of ten from its current level Explain. (Hint: Consider diminishing returns.)