Answer :
Final answer:
The statement is false. Real GDP per worker can still increase as physical capital per worker increases, but at a decreasing rate.
Explanation:
The statement is false. Diminishing returns to physical capital means that as physical capital per worker increases, the additional output produced by each additional unit of capital decreases. However, this does not mean that real GDP per worker eventually decreases. Real GDP per worker can still increase, but at a decreasing rate.
For example, if a factory hires more workers but does not invest in additional capital, there might be overcrowding and inefficiencies which could lead to a decrease in real GDP per worker. However, if the factory invests in more capital alongside hiring more workers, it can increase production and ultimately increase real GDP per worker.
Learn more about Diminishing returns to physical capital here:
https://brainly.com/question/31359359
#SPJ11
