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 is an example of:

Question

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The fact that the Soviet Union made more physical capital available to its workers but saw successively smaller increases in productivity suggests that they were experiencing diminishing returns to physical capital. This means that as more and more physical capital (such as machinery or equipment) was added, the additional output generated by each additional unit of capital began to decrease.

During the Latter Half of the Twentieth Century, the Soviet