nysical capital includes the knowledge and skills workers have gained thre ducation and experience. O True

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter11: Labor Markets
Section: Chapter Questions
Problem 7SQP
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Please see below. Three true or false items.
When workers participate in a competitive and well-functioning labor market, they
have an incentive to acquire additional human capital, because additional education
and skills will pay off in higher wages.
True
False
Economic convergence is the idea that low-income and middle-income economies
grow faster than those of high-income countries.
True
False
Transcribed Image Text:When workers participate in a competitive and well-functioning labor market, they have an incentive to acquire additional human capital, because additional education and skills will pay off in higher wages. True False Economic convergence is the idea that low-income and middle-income economies grow faster than those of high-income countries. True False
Physical capital includes the knowledge and skills workers have gained through
education and experience.
True
False
Transcribed Image Text:Physical capital includes the knowledge and skills workers have gained through education and experience. True False
Expert Solution
Step 1

1.. TRUE,

BECAUSE 

A strong economic environment generally includes some kind of market direction at the microeconomic, individual, or firm dynamic level. Markets that permit individual and business rewards and motivators for expanding human and actual capital empower by and large macroeconomic development. For instance, when laborers take part in a competitive and well-working work market, they have a motivator to secure extra human resources, in light of the fact that extra training and abilities will pay off in higher wages. Firms have a motivation to put resources into actual capital and in preparing laborers, since they hope to acquire higher benefits for their investors. The two people and firms search for new advances, in light of the fact that even little creations can make work more straightforward or lead to item improvement. Altogether, such individual and business choices made inside a market structure amount to macroeconomic development.

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