Solved

The Law of Diminishing Returns Means That

Question 95

Multiple Choice

The law of diminishing returns means that:


A) additional investments in physical capital will significantly boost output in wealthier countries with already existing large capital stocks.
B) the economic growth rates of wealthier countries must always exceed the economic growth rates of poorer countries.
C) additional investments in physical capital are not as productive as additional investments in human capital.
D) additional investments in physical capital do not boost output in wealthier countries with already existing large capital stocks.

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