True or false:
As more and more people get higher education, this leads to capital deepening.
Capital deepening refers to increase in the capital labor ratio.This ratio can go up by either an increase in the capital stock or decrease in the number of workers. With higher and advanced education the productivity of the labor improves as they use better means and tools for production.This results in fewer workers and thus leading to capital deepening. So the statement is true.
True or false: As more and more people get higher education, this leads to capital deepening.
Education seems to be important for human capital deepening. As people become better educated and more knowledgeable, are there limits to how much additional benefit more education can provide? Why or why not?
1. Assume that the human capital model is true – education leads to increased earnings because it improves the skills of the students who get education. a. Write one empirical observation that we would expect to be true based on the human capital model. Only refer to variables you can actually measure (so for example you can’t observe “skill,” but you could observe “a math test score”). Ideally, pick an empirical prediction that we didn’t talk about in class. b....
If a government wanted to raise capital deepening it should encourage entrepreneurship. invest in education and research. lower taxes and regulations. Previous Next
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