Question

in the solow growth model, human capital will increase if (choose the best answer): a. there are more workers. b. workers are better educated. c. there are more workers and/or existing workers become better educated and skilled. d. real wages increase. e. there is an increase in production.

Answer 1

In the Solow growth model, human capital will increase if workers are better educated. Higher levels of education and skills make workers more productive and contribute to economic growth. Therefore, the correct option is b. workers are better educated.

Step-by-step explanation:

In the Solow growth model, human capital will increase if workers are better educated. This means that option b, workers are better educated, is the correct answer. When workers have higher levels of education and skills, they become more productive and can contribute more to the economy. With increased human capital, workers can create new technological innovations that can lead to further economic growth.