Which of the following is correct? Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital. Third World countries are rich in human capital. An increase in the quantity of labor always leads to economic growth. A decrease in the productivity of labour leads to economic growth.

Question

Scarlett Holloway

Business

23 January, 18:56

Which of the following is correct? Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital. Third World countries are rich in human capital. An increase in the quantity of labor always leads to economic growth. A decrease in the productivity of labour leads to economic growth.

+4

Answers (1)

Know the Answer?

Mateo Clark · Answer 1

a. Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital.

Explanation:

Of all the option only option A is correct that is Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital.

The statement means that educated humans are like human capital and increase in education increase human capital. Same like building factories adds to stock of physical capital.