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Problem

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question

Why is the principle of diminishing returns so important to growth theory?

category

economics

options

  1. Diminishing returns are offset by increased government spending.
  2. Diminishing marginal returns indicate that capital accumulation and population growth alone cannot indefinitely increase output.
  3. Diminishing returns lead to unlimited growth.
  4. Diminishing returns indicate that resource depletion enhances growth rates.
  5. Diminishing returns have no effect on growth theory.
  6. Diminishing returns increase the rate of growth.
  7. Diminishing returns apply only to economies in recession.
  8. Diminishing returns mean that investment in infrastructure has a constant return on growth.
  9. Diminishing returns suggest that increased education levels will always lead to higher growth rates.
  10. Diminishing returns imply that technology has no impact on long-term growth.

src

stemez-Economics

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