The Relationship Between Investment in Human Capital Education and Training and Gross Domestic Product Per Capita

If the president’s plan is to improve the economy by giving incentives to companies who provide technology education and training for employees, he would be basing his plan on the conclusion that:

• an investment in human capital will increase a country’s gross domestic product (GDP)

• adjusting the exchange rate will increase the profit the country makes in international trade

• an investment in capital goods will increase the country’s gross domestic product (GDP)

• an embargo on technology from other countries will help the economy

What is human capital?

• a country’s standard of living

• the cash a business has to spend

• investment in the workers of a business or country

• the buildings, equipment, and property owned by a business

A country that does not invest in human capital will have problems because…

• There will be no money to pay its workers.

• Workers will teach their supervisors the skills they need.

• Businesses will not pay the taxes to pay for good schools

• Workers who are not educated, skilled, and healthy are less productive.

What type of investments would help raise a

country's literacy rate and standard of living?

• investments in bonds

• investments in stocks

• investments in human capital

• investments in capital goods

Knowledge or skills of how to do something obtained through life experience, training, education, and/or other methods of learning

• Physical Capital

• Human Capital

• Human Resources

• Productive Resources

Investment in ___ is considered as one of the main sources of human capital

• Education

• Health

• On job-training

• All the above

What statistic helps determine a country's

investment in human capital?

• how much money the country spends on

  education

• how much money the country spends on

  healthcare

• how much money the country spends on

  infrastructure

• how much money the country spends on the

  military

What key factor affects a nation's economic

growth the MOST?

• the goods its trading partners specialize in

• the length of time its leader has been in office

• the education and skill level of its workforce

• the amount of choices available to its consumers

Which population has the LOWEST human capital?

• Egypt

• Nigeria

• South Africa

• Sudan

Why is it important for a country to invest in human capital?

• All humans need capital to survive

• Starting your own business is good for the economy

• Countries that invest in the education and training of their people usually have a higher GDP

• Countries that invest in new technology and machinery produce more and have a higher GDP