During the latter half of the twentieth century, the Soviet Union made more physical capital available to its workers, but this increase resulted in successively smaller increases in productivity. This example illustrates:

Question

Quizplus · Accepted Answer

The example given illustrates diminishing returns to physical capital, where adding more physical capital (in this case, making more available to workers) leads to successively smaller increases in productivity.

During the Latter Half of the Twentieth Century, the Soviet