What is human capital? How do workers acquire human capital, and how does the acquisition of human capital influence total factor productivity and labor productivity?
What will be an ideal response?
Human capital is the accumulated knowledge and skills that workers acquire from education and training or from life experiences. Workers acquire human capital in two basic ways: going to school for formal training to learn basic skills that are useful in the workplace, and through learning by doing, which refers to improving productivity by repeatedly performing a task. The more human capital that workers acquire, the more productive the workers become, which increases total factor productivity and labor productivity.
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
If an indifference map for a consumer is made up of straight, negatively sloped lines, the goods are
A) perfect complements. B) unrelated. C) perfect substitutes. D) not desirable.
Economic growth may understate changes in standards of living if
A) the growth is accompanied by increasing congestion. B) leisure time is also increasing. C) the types of jobs generated feelings of alienation. D) deflation is taking place.
Free markets produce relatively high levels of efficiency but low rates of growth.
Answer the following statement true (T) or false (F)