Question

The knowledge, education, training, skills, and expertise of a firm╩ ╣s workers is known as:

A) physical capital.
B) management╩╣s philosophy.
C) production capital.
D) human capital.
E) cultural diversity.

Answer 1

The term for the collective knowledge, skills, and expertise of a firm's workers is known as human capital, which plays a critical role in innovation and economic growth.

Step-by-step explanation:

The knowledge, education, training, skills, and expertise of a firm's workers is known as human capital. This concept is crucial in understanding how economies grow and develop. Human capital is often a key factor in the ability to innovate and improve technology, which, when combined with investments in physical capital such as machinery and infrastructure, can lead to significant increases in production and economic growth.

Human capital is not just about the formal education a worker has received, but also their accumulated skills and knowledge that contribute to their productivity. This is akin to physical capital, where both quantity and quality matter, and both types of capital require investment to improve future productivity. A well-trained and knowledgeable workforce can leverage technology and physical capital to create a more efficient and dynamic economic environment.