All of the following are important sources of growth except:
A)institutions with incentives compatible with growth.
B)technological development.
C)decreasing returns to scale.
D)capital accumulation.

Question

Quizplus · Accepted Answer

Decreasing returns to scale imply that as a firm or economy grows, the additional output it gets from using additional inputs decreases. This concept does not support growth but rather suggests a limit to efficient expansion, contrasting with the other options which directly contribute to economic growth.

All of the Following Are Important Sources of Growth Except