ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Investing in human capital decreases a country’s GDP
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Investing in human capital increases a country’s GDP
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Investing in human capital has no effect a country’s GDP
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None of the above
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Detailed explanation-1: -Human Capital Investments and Employment Growth If employment is improving, consumer spending rises, leading to increased revenue for companies and additional business investment. As a result, employment is a key indicator or metric for determining how GDP growth may perform.
Detailed explanation-2: -Human capital formation raises the production level and leads to economic growth by adding to GDP.
Detailed explanation-3: -When a country invests in human capital it has the ability to foster more entrepreneurs, the more entrepreneurs a country has the higher the GDP.
Detailed explanation-4: -Investment and Economic Growth. Investment adds to the stock of capital, and the quantity of capital available to an economy is a crucial determinant of its productivity. Investment thus contributes to economic growth.