Because of diminishing returns to capital,further increases in the quantity of capital in China would result in ________ in real GDP per worker.

Question

Quizplus · Accepted Answer

According to the law of diminishing returns, as more units of a variable input are added to a fixed input, the marginal product of the variable input will eventually decline. In this case, adding more capital to China's economy will eventually result in smaller and smaller increases in real GDP per worker due to diminishing returns to capital. Therefore, the best choice is A.

Because of Diminishing Returns to Capital,further Increases in the Quantity