Diminishing returns to capital means that twice the amount of capital will lead to twice the amount of output.
Correct Answer:
Verified
Q80: Q81: The number of potential ideas in the Q82: If a country is currently to the Q83: Capital accumulation alone can explain sustained economic Q84: Catching-up growth occurs primarily through capital accumulation Q86: In the past several hundred years,economic growth Q87: Growth consists of two types: catching-up growth Q88: The concept of diminishing returns explains why Q89: If a country is currently to the Q90: In the Solow model,output increases when investment![]()
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents