CLEP Principles of Macroeconomics Exam Prep

Answer - A - True. Human capital consists of workers’ skills and education.

Key Takeaway: In general, there are four things that can lead to overall economic growth: increasing capital, increasing the labor force, progress in technology, and improving the quality of the labor. By investing in increasing the skill and education level of the workforce, it is possible to both increase capital and improve the quality of the labor. Such an investment often pays off big in the road to economic growth.