ECONOMICS
HUMAN CAPITAL
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The United Kingdom’s government has placed limits on trade with other countries.
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The United Kingdom’s citizens have equal access to educational opportunities.
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The United Kingdom’s citizens enjoy a relatively high standard of living.
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The United Kingdom’s economy is heavily dependent on agriculture.
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Detailed explanation-1: -Human capital affects economic growth and can help to develop an economy by expanding the knowledge and skills of its people. The level of economic growth driven by consumer spending and business investment determines the amount of skilled labor needed.
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: -Job Creation and Employment: Most foreign direct investment is designed to create new businesses in the host country, which usually translates to job creation and higher wages. Technology Transfer: Foreign direct investment often introduces world-class technologies and technical expertise to developing countries.
Detailed explanation-4: -The theory suggests that a person’s knowledge and skills are no different than any other form of capital. Investing in human capital increases economic output and an employee’s earning potential.