Practice question · True or false
Because ideas can be used by everyone simultaneously, technological progress escapes the diminishing returns that limit capital accumulation.
Hints
- Using a blueprint does not use it up.
- That is why one growth source escapes the usual limit.
Show the answer
True
Why
A blueprint is non-rival: using it doesn’t use it up. That is why sustained long-run growth ultimately rides on technology, not on piling up ever more machines.
Practise Economic Growth
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