Human Capital and Capital Goods GDP

The total value of everything produced by all people and businesses in a country in one year

• GDP per capita

• Gross Domestic Product

• Standard of Living

The average value per person of everything produced in a country in one year

• GDP per capita

• Gross Domestic Product

• GDP Growth

Which country has probably invested more in human and capital resources?

• Country A

• Country B

Investments in human capital include spending money for which of the following?

• college scholarships

• new factories

• on-the-job training

• drilling for oil

The German government has provided education and job training to people. How did the German government try to improve its economy?

• It made investments in human capital.

• It took advantage of its natural resources.

• It reduced barriers to starting new businesses.

• It helped companies invest in capital resources.

What is an example of an investment in human capital?

• A company pays for its workers to go to graduate school.

• A company buys a new computer system to improve productivity.

• A company hires a lobbyist to fight government regulations.

• A company starts using better materials to improve product quality.

What is the primary benefit of investing in human capital through education and training?

• Increased GDP per capita

• Decreased unemployment rate

• Higher inflation rate

• Lower interest rates

Which of the following is a direct result of higher investment in human capital?

• Improved labor productivity

• Increased natural resources

• Higher government debt

• Lower consumer spending

How does education contribute to economic growth?

• By increasing workforce skills

• By reducing government spending

• By decreasing population growth

• By increasing inflation

What is GDP per capita a measure of?

• Average economic output per person

• Total national income

• Total exports of a country

• Government spending per person