Social Sciences and History / Unit 14 SSH 1316 short lesson, about 20 seconds
Convergence and Diminishing Returns
Captions available
The idea
Convergence is low-income economies catching up with high-income ones. New investment in capital yields huge gains where capital is scarce and less where it is abundant, since returns diminish; high-income economies must keep inventing. Innovation can offset diminishing returns.
In practice
A first tractor against a tenth.
Where people slip
Institutions that sustain innovation are the anchor's caveat.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Unlocks
- Nothing yet depends on this.
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