Which of the following policies would increase the growth rate of an economy in the endogenous growth model with human capital?

Question

Quizplus · Accepted Answer

Mandatory schooling would increase the growth rate of an economy in the endogenous growth model with human capital by increasing the level of human capital in society. This would lead to an increase in the productivity of labor and therefore greater economic growth over time. Minimum wages, redistributive taxation, and lump-sum taxation would not directly impact the level of human capital in the economy and would therefore not necessarily lead to increased economic growth.

Which of the Following Policies Would Increase the Growth Rate