Suppose the production function takes the following form: Y/N = f(K/N, H/N), where Y/N is output per worker, K/N is capital per worker, and H/N is human capital per worker.
Part 2
Which of the following examples best describes ways to increase human capital directly? (Check all that apply.)
Part 3
A. A car company buys new computers to replace older, slower ones.
B. Sam decides to put off working and attends a 4-year university.
C. A firm decides to fire a worker to hire a new manager.
D. A tech firm requires all new employees to go through a 12-week training period.
Part 4
Given the production function above, an increase in human capital per worker will lead to __________.
Part 5
A. a higher steady-state level of output per worker.
B. no change in output per worker.
C. growth in output per worker but only if the economy is below the steady state initially.
D. a decline in output per worker in the long run.
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