Question 1
An increase in the quality of capital is a result of
◦ population growth.
◦ disembodied technical change.
◦ embodied technical change.
◦ an increase in the labor force.
Question 2
Embodied technical change is one reason why
◦ human capital is more valued in an economy than physical capital.
◦ the quality of capital had decreased.
◦ labor productivity has increased over time.
◦ increases in population decrease labor productivity.