ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It made investments in human capital.
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It took advantage of its natural resources.
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It reduced barriers to starting new businesses.
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It helped companies invest in capital resources.
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Detailed explanation-1: -What did the German government do to promote economic development? It issued a single form of currency for Germany and reorganized the banking system. The leaders of the new empire were determined to maintain economic strength.
Detailed explanation-2: -Human capital allows an economy to grow. When human capital increases in areas such as science, education, and management, it leads to increases in innovation, social well-being, equality, increased productivity, improved rates of participation, all of which contribute to economic growth.
Detailed explanation-3: -The human capital theory posits that human beings can increase their productive capacity through greater education and skills training. Critics of the theory argue that it is flawed, overly simplistic, and confounds labor with capital.
Detailed explanation-4: -The German chemical industry became the most advanced in the world, and by 1914 the country was producing half the world’s electrical equipment. The rapid advance to industrial maturity led to a drastic shift in Germany’s economic situation – from a rural economy into a major exporter of finished goods.