Chapter 12 Production and Growth 5.Which of the following is human capital? A.a

Question

Chapter 12 Production and Growth

5.Which of the following is human capital?

A.a student loan

B.understanding how to use a company's accounting software

C.training videos for new corporate employees

D.All of the above are correct.

6.One of the Ten Principles of Economics in Chapter 1 is that people face tradeoffs. The growth that arises from capital accumulation is not a free lunch. It requires that society

A.conserve resources for future generations.

B.sacrifice consumption goods and services now in order to enjoy more consumption in the future.

C.recycle resources so that future generations can produce goods and services with the accumulated capital.

D.None of the above is correct.

7.Other things the same, a country that increases its savings rate will have

A.higher future capital and higher future real GDP per person.

B.higher future capital but not higher future real GDP per person.

C.higher future real GDP per person but not higher future capital.

D.neither higher future capital nor higher future real GDP per person.

Explanation / Answer

5. B.understanding how to use a company's accounting software

Because it affects the future output of the firm. So, it is a human capital for the firm.

6. B.sacrifice consumption goods and services now in order to enjoy more consumption in the future.

7. A.higher future capital and higher future real GDP per person.

Increase in saving rate increase the savings of the public in future which utlimately increases the production of goods and services and thus increases future real GDP and future capital.

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