A nation can raise its productivity by investing more in _____
A) both human and physical capital.
B) human capital only.
C) physical capital only.
D) stable foreign economies.
E) stocks and bonds rather than physical assets.

Question

Quizplus · Accepted Answer

Productivity, in its simplest definition, is the amount of output produced per unit of input. To increase productivity, a nation needs to invest in both human and physical capital. Human capital includes education, training, and healthcare, which improve the skills and knowledge of the workforce. Physical capital includes infrastructure, technology, and equipment, which enhance the efficiency of the production process. By investing in both types of capital, a nation can increase its output per unit of input, which leads to economic growth and prosperity. Therefore, option A is the best choice.

A Nation Can Raise Its Productivity by Investing More in _____