Question 1
In all economies experiencing modern economic growth
◦ labor expands at a more rapid pace than capital.
◦ capital and labor expand at a constant rate.
◦ capital expands at a more rapid pace than labor.
◦ capital expands, but labor remains constant.
Question 2
An increase in human capital
◦ increases the productivity of labor.
◦ decreases the productivity of labor.
◦ increases the productivity of labor only if there is a corresponding technological change.
◦ increases the capital-labor ratio.