Diminishing Returns Explain Why Labor and Capital Alone Cannot Account

question 56

True/False

Diminishing returns explain why labor and capital alone cannot account for the phenomenal growth in productivity during the last 200 years.

---

Definitions:

Exponential Growth

Growth, particularly of a population, in which the increase occurs in the same manner as compound interest.

Lag Phase

The initial period of slow growth or inactivity that occurs after bacteria are introduced to a new environment or nutrient medium.

Stable Equilibrium

A state in which a system, when disturbed from an initial condition, experiences forces that tend to return it to its original state.

Growth Rate

The rate at which an organism or population increases in size, often measured as a percentage of increase over a specific period of time.