Increases in human capital
A) reduce the marginal product of labor
B) increase the marginal product of physical capital
C) are the by-product of technological innovations
D) shift the economy's production function downward
E) are calculated as the difference between birth rates and death rates

Question

Quizplus · Accepted Answer

Increases in human capital, such as education and training, can increase the marginal product of physical capital by improving the skills and abilities of workers, making the physical capital more productive. This leads to an upward shift in the economy's production function.

Increases in Human Capital