Economic growth will A. be faster if more capital per hour is used because of increasing returns to capital. B. slow down or stop if more capital per hour is used because of diminishing returns to capital. C. not be affected because the key to economic growth is capital accumulation whether there are diminishing returns or not. D. not be sustained if developing countries stop accumulating capital because of diminishing returns to capital. Some economies are able to maintain high growth rates despite diminishing returns to capital by using A. better or enhanced technology, along with accumulating capital; these economies are growing because technology, unlike capital, is subject to increasing returns. B. a larger proportion of capital, thereby making their production capital intensive, so the sheer volume of capital protects them from diminishing returns to capital. C. a labor-intensive technology because labor, unlike capital, is not subject to diminishing returns. D. a newer production method that, if used properly, produces increasing returns to capital.

B and A

Explanation: Economic growth is the increase in the productive capacity of the economy. There will be a decrease in economic growth if more capital per hour is used as a result of the diminishing returns to capital.

Some economies maintain high growth rates despite diminishing returns to capital through the use of enhanced or better technology, coupled with accumulating capital. There are growth in such economies because unlike capital, technology is subject to increasing returns.

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