The country of Saudi Arabia has invested heavily in improving its human capital and physical capital. Which is a likely result of this increased investment?

Question

The country of Saudi Arabia has invested heavily in improving its human capital and physical capital. Which is a likely result of this increased investment?

Responses
A Gross Domestic Product (GDP) risesGross Domestic Product (GDP) rises
B standard of living goes down standard of living goes down
C Gross Domestic Product (GDP) falls Gross Domestic Product (GDP) falls
D trade increases

Answer 1

A. Gross Domestic Product (GDP) rises is the likely result of increased investment in human and physical capital in Saudi Arabia. Improving human capital through education and training will increase the productivity and efficiency of workers, while investing in physical capital, such as infrastructure and technology, will increase the capacity for economic growth and development. This will lead to an increase in GDP, which is a measure of a country's economic output.