Country a and country b both increase their capital stock by one unit. output in country a increases by 10 while output in country b increases by 8. other things the same, diminishing returns implies that country a is:

Country A is poorer than country B. If another unit of capital is added to Country A, Output will surely increase, but by less than 10 units.

Explanation:

Diminishing returns is the decrease in output experienced by increasing a single factor of production, while keeping all other factors constant.

no , per capita income is not a true measure of the development because: -it only tells us about average income not how income is distributed among the people.it only give us an idea of the economic aspect.it is only at the qualitative basis.moreover, income is not only the way of development other factors are also as much as important as income.