Final answer:
Capital deepening refers to an increase in capital per worker and is affected by various economic factors. A weak economy with limited investments would not lead to capital deepening, while a rise in international trade could indirectly affect it. However, continued education directly contributes to human capital deepening.
Step-by-step explanation:
Capital deepening refers to an increase in the amount of capital per worker within an economy. This could include any form of capital, such as physical capital (like machinery or buildings) or human capital (like training or education).
a. Weak Economy and Investment Reluctance: In the case of a weak economy where businesses are unwilling to make long-term investments in physical capital, we would not expect to see capital deepening. This is because, over time, the population tends to grow, and without additional investments, the capital available per person would actually decrease, not deepen.
b. Rise in International Trade and Capital Deepening: While a rise in international trade does not have a direct influence on capital deepening, there exist scenarios where trade could indirectly contribute to deepening. For instance, if international trade leads to capital inflows that fund investments in physical capital, capital deepening could result. However, generally speaking, a rise in international trade by itself does not guarantee capital deepening.
c. Continuing Education and Capital Deepening: An increase in adults participating in continuing education through their employers or academic institutions directly contributes to the enhancement of human capital, and therefore, results in capital deepening. As workers enhance their skills and knowledge, the overall human capital per person in the economy increases.