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True or false: As more and more people get higher education, this leads to capital deepening.

True or false:

As more and more people get higher education, this leads to capital deepening.

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Answer #1

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.

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