The introduction of human capital to the Solow neoclassical growth model reduces the significance of the contribution of ________ to increases in per capita income.
A)K
B)L
C)K and L
D)None of the above.

Question

Quizplus · Accepted Answer

The introduction of human capital emphasizes the importance of labor (L) in economic growth. Therefore, the contribution of K (physical capital) decreases in significance in explaining increases in per capita income.

The Introduction of Human Capital to the Solow Neoclassical Growth