Why does productivity growth in high-income economies not slow down as it runs into diminishing

Name: Why does productivity growth in high-income economies not slow down as it runs into diminishing returns from additional investments in physical capital and human capital? Does this show one area where the theory of diminishing returns fails to apply? Why or why not?
Uploaded: 2021-06-16T21:55:14-08:00
Duration: 3 min 9 s
Channel: Oluwadamilola Ameobi
Description: Why does productivity growth in high-income economies not slow down as it runs into diminishing returns from additional investments in physical capital and human capital? Does this show one area where the theory of diminishing returns fails to apply? Why or why not?

Question

Oluwadamilola Ameobi · Accepted Answer

Step 1: The theory of diminishing returns suggests that as additional investments are made in ph

Question

Why does productivity growth in high-income economies not slow down as it runs into diminishing returns from additional investments in physical capital and human capital? Does this show one area where the theory of diminishing returns fails to apply? Why or why not?

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