An increase in which of the following factors entails beneficial side effects or positive externalities that can make physical capital more productive?
A) money supply
B) human capital
C) land
D) labor

Question

Quizplus · Accepted Answer

Human capital refers to the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country. An increase in human capital can lead to more innovation, improved efficiency, and higher productivity in the use of physical capital, as well-trained and educated workers are better able to operate, maintain, and improve machinery and equipment. This results in beneficial side effects or positive externalities beyond the immediate outputs of the labor itself.

An Increase in Which of the Following Factors Entails Beneficial