Rank physical capital, human capital, technology, and natural resources from most important to least important in influencing modern long-run economic growth of aggregate output per capita.

Question

Business

Bryanna Glenn

24 September, 04:42

Rank physical capital, human capital, technology, and natural resources from most important to least important in influencing modern long-run economic growth of aggregate output per capita.

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Answers (1)

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Diana Hood · Answer 1

1. Natural Resources.

2. Physical Capital or Infrastructure.

3. Human Capital.

4. Technology.

Explanation:

1. Natural Resources. The discovery of more natural resources like oil, or mineral deposits boosts economic growth and increases the country's Production Possibility Curve.

2. Physical Capital or Infrastructure. Increased investment in physical capital, such as factories, machinery, and roads, will lower the cost of economic activity. Better factories and machinery are more productive than physical labor.

3. Human Capital. A skilled labor force has a significant effect on growth since skilled workers are more productive.

4. Technology. Technology could increase productivity with the same levels of labor, thus accelerating growth and development.