Investments in both physical and human capital enhance economic growth because they:
A. increases consumption during the current period.
B. makes it possible for individuals to produce more goods and services per hour worked.
C. encourages firms to expand output by employing more low-productivity workers.
D. encourages workers to unionize and, thereby, fight for higher wages.
Answer: B
Economics
You might also like to view...
The oldest central bank, having been founded in 1694, is the
A) Bank of England. B) Deutsche Bundesbank. C) Bank of Japan. D) Federal Reserve System.
Economics
Depositors have a strong incentive to show up first to withdraw their funds during a bank crisis because banks operate on a
A) last-in, first-out constraint. B) sequential service constraint. C) double-coincidence of wants constraint. D) everyone-shares-equally constraint.
Economics