What is meant by human capital and how can it be used to promote economic growth?
What will be an ideal response?
Human capital is a worker’s stock of education and training that equips them to perform in a certain profession. Investment in human capital involves both formal education and on-the-job training. This investment increases labor productivity and earnings, which subsequently promotes economic growth. It’s estimated that 15 percent of productivity growth is due to human capital investment.
You might also like to view...
When the Fed embarked on a policy known as quantitative easing, they
A) reduced the required reserve ratio by one-quarter point per month for 12 months. B) bought longer-term securities than are usually bought in open market operations. C) opened up lending to primary dealers, commercial banks, and investment banks. D) slowly lowered the federal funds rate target until it was equal to zero.
An increase in the supply of capital, which is a complement to labor, will lead to
A) an increase in the quantity of labor demanded. B) a decrease in the demand for labor. C) an increase in the demand for labor. D) a decrease in the quantity of labor demanded.
In a monopoly,
A) marginal revenue is greater than price. B) marginal revenue is less than price. C) the demand curve is horizontal. D) marginal revenue and price are equal
The MC = MR approach to profit maximization means that a firm should produce until
a. marginal revenue equals zero b. additional profit equals zero c. marginal cost becomes negative d. marginal revenue equals price e. price equals average total cost