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Explain the concept of diminishing returns to physical

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1.) Explain the concept of diminishing returns to physical capital. What does it predict about economic growth of different countries over time? Give two real world examples that are in line with this prediction, and one that contradicts this prediction.

2.) How is this concept similar to, and how is it different from, the concept of decreasing returns to scale?

3.) If you were a policymaker who could choose one specific policy to increase long-term prosperity of your citizens, what would it be and why?

Reference no: EM132166557

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