1. Explain the concept of diminishing returns to physical capital. What does it predict about economic growth of different countries over time? Give real world examples of countries that are in line with this prediction, as well as those that contradict this prediction.
2. How is the concept of diminishing returns to an input (such as physical capital) similar to, and how is it different from, the concept of decreasing returns to scale? Which one of these is more likely to be observed in real-world economies, and why?
3. What is your view on GDP as a measure of wellbeing? Carefully discuss.