Which of the following is correct?
A)An increase in the quantity of labor always leads to economic growth.
B)Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital.
C)A decrease in the productivity of labor leads to economic growth.
D)Japan and Hong Kong are rich in natural resources.

Question

Which of the following is correct?
A)​An increase in the quantity of labor always leads to economic growth.
B)​Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital.
C)​A decrease in the productivity of labor leads to economic growth.
D)​Japan and Hong Kong are rich in natural resources.

Quizplus · Accepted Answer

Increased education is one way to improve human capital, and just as building factories adds to physical capital, increased education contributes to a country's overall stock of resources. Option A is incorrect because an increase in the quantity of labor does not necessarily guarantee economic growth without a corresponding increase in productivity. Option C is incorrect because a decrease in the productivity of labor is likely to reduce economic growth. Option D is incorrect because Japan and Hong Kong are not considered rich in natural resources, but rather they rely on other factors such as technology, innovation, and manufacturing to drive their economies.

Which of the Following Is Correct