200 words Assignment needed
Overview
In this week’s readings, Chapter 6 and Chapter 7 from the textbook (pdf attached), and from the Economic Growth video, we will learn that economic growth leads to a country (or nation) having a greater access to a higher well-being. As such, it is established in these chapters that the growth rate in the country’s GDP per capita (a measure of its standard of living) measures the country’s economic growth. We also learn that the three pillars of growth are capital formation, technology and labor quality.
Assignment
Much of the discussion on capital accumulation and economic growth focuses on physical capital. But as we can imagine, human capital is also very important. As we can see from this graph (Picture included), international data on educational attainment shows a positive relationship between average years of schooling and real GDP per capita.
Consider that the government of a poor country is trying to decide whether to encourage investment in physical capital, or encourage research and development. Which of the two (investment in physical capital, or research and development) would you favor? Would your answer change if the country is considering human capital investment rather than physical capital investment? Can the accumulation of human capital be responsible for growth in the long run? Why or why not?
Task
1. From Chapter 7, review the main pillars of economic growth (the slide deck provided may help).
2. As your first post, create a thread addressing the two questions posed above (1. physical capital (or human capital) or research and development? and 2. can human capital be responsible for growth in the long run?). Since the questions are related, a paragraph summarizing your answers should be sufficient.
Additional Details
1. The title of your initial post should be: Your First Name Your Last Name Initial Comment.
2. Post should be about 200 words.
3. Grading is based on your participation in this discussion. Grading system: 6 points for content, 2 point for participation, and 2 point for timeliness. The grading rubric is available for review through the Grading Information tab below.
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