Question

The potential output of a country relies on three sources: human capital, physical capital, and technology. Changes in any one of these can change the growth rate in a country. In order to fully understand the sources of growth in an economy, both empirically and theoretically, it is important to understand what each group contains. Classify each item as something that affects human capital, physical capital, or technology.

a. More culinary school graduates
b. Company cars
c. Adult literacy increase
d. Development of smaller mp3 players
e. New distribution techniques
f. Doctors learning to use a new cancer treatment
g. Company computers
h. A new cancer treatment
i. More college students

Answer 1

A country's economy or or the potential output depends on three factors. They are the Physical capital, the human capital and the technology it possesses.

Step-by-step explanation:

Human capital, Physical capital and the technology a country has determines the potential output of a country. It affects the growth of the country economically. All these sources contains the following :

Human Capital :

a. More culinary school graduates

c. Adult literacy increase

f. Doctors learning to use a new cancer treatment

i. More college students

Physical capital :

b. Company cars

g. Company computers

Technology :

d. Development of smaller mp3 players

e. New distribution techniques

h. A new cancer treatment