The productivity of workers in an economy will be high if the economy has ________.
A) a large working age population
B) a negative rate of inflation
C) high levels of human capital
D) a small physical capital stock

Question

Quizplus · Accepted Answer

High levels of human capital, which refer to the knowledge, skills, education, and training of workers, have been shown to be an important determinant of productivity. A larger working age population may increase the number of workers, but if they do not have the necessary skills and knowledge, their productivity may still be low. Negative inflation and a small physical capital stock are not necessarily related to productivity.

The Productivity of Workers in an Economy Will Be High