In the richer countries, over the past two centuries: Select one: a.physical cap
ID: 1094739 • Letter: I
Question
In the richer countries, over the past two centuries:
Select one:
a.physical capital has increased significantly, but not human capital
b.physical capital has steadily increased, while human capital first increased and then decreased
c.physical and human capital have both increased significantly
d.human capital has increased significantly, but not physical capital
e.physical and human capital have both increased significantly, but the increase in physical capital has caused almost all of the growth in output
Explanation / Answer
In the richer countries, over the past two centuries, both human and physical capital have increased overtime.
Physical captial refers to financial money as well as machinery etc.
Human capital refers to the skillset of the labor force.
In the richer countries, high amount of physical as well as human capital have together worked to increased level of output in the economy. Phyiscal capital accentuates human capital, which in turn accentuates physical capital.
Correct option: c.physical and human capital have both increased significantly