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Holding everything else constant, there is a () the textbook) and real GDP (denoted with Y). A country's total human capital stock is (i). quality of education and the job experience of the ordinary worker Select one: () negative, (i) positively () positive, (i) negatively () negative, () negatively () positive, () positively relationship between the total human capital stock (denoted with Hin related to the overall

Holding everything else constant, there is a () the textbook) and real GDP (denoted with Y). A country's total human capital stock is (i). quality of education and the job experience of the ordinary worker Select one: () negative, (i) positively () positive, (i) negatively () negative, () negatively () positive, () positively relationship between the total human capital stock (denoted with Hin related to the overall

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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--- ### Understanding Human Capital and Its Relationship to GDP **Question:** Holding everything else constant, there is a (i) _________ relationship between the total human capital stock (denoted with H in the textbook) and real GDP (denoted with Y). A country's total human capital stock is (ii) _________ related to the overall quality of education and the job experience of the ordinary worker. Select one: - (i) negative, (ii) positively - (i) positive, (ii) negatively - (i) negative, (ii) negatively - (i) positive, (ii) positively **Explanation:** To answer this question, students must understand the relationship between human capital and GDP. Here are some key concepts: 1. **Human Capital**: Represents the skills, knowledge, and experience possessed by an individual or population, seen in terms of their value or cost to an organization or country. 2. **GDP (Gross Domestic Product)**: The total value of goods produced and services provided in a country during one year. **Interpretation of Relationship:** - **Positive Relationship**: Indicates that as one variable increases, the other also increases. - **Negative Relationship**: Indicates that as one variable increases, the other decreases. Given these concepts, consider the typical relationship between human capital and GDP. Generally, as human capital increases through better quality education and more job experience, the productivity of workers improves, leading to higher GDP. **Correct Answer:** - **(i) positive, (ii) positively** This selects the correct option indicating a positive relationship between total human capital stock and real GDP, and a positive relationship between human capital and both the quality of education and job experience. By increasing human capital through education and experience, a country is likely to see an increase in GDP due to higher productivity and efficiency in the workforce. ---
Transcribed Image Text:--- ### Understanding Human Capital and Its Relationship to GDP **Question:** Holding everything else constant, there is a (i) _________ relationship between the total human capital stock (denoted with H in the textbook) and real GDP (denoted with Y). A country's total human capital stock is (ii) _________ related to the overall quality of education and the job experience of the ordinary worker. Select one: - (i) negative, (ii) positively - (i) positive, (ii) negatively - (i) negative, (ii) negatively - (i) positive, (ii) positively **Explanation:** To answer this question, students must understand the relationship between human capital and GDP. Here are some key concepts: 1. **Human Capital**: Represents the skills, knowledge, and experience possessed by an individual or population, seen in terms of their value or cost to an organization or country. 2. **GDP (Gross Domestic Product)**: The total value of goods produced and services provided in a country during one year. **Interpretation of Relationship:** - **Positive Relationship**: Indicates that as one variable increases, the other also increases. - **Negative Relationship**: Indicates that as one variable increases, the other decreases. Given these concepts, consider the typical relationship between human capital and GDP. Generally, as human capital increases through better quality education and more job experience, the productivity of workers improves, leading to higher GDP. **Correct Answer:** - **(i) positive, (ii) positively** This selects the correct option indicating a positive relationship between total human capital stock and real GDP, and a positive relationship between human capital and both the quality of education and job experience. By increasing human capital through education and experience, a country is likely to see an increase in GDP due to higher productivity and efficiency in the workforce. ---
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