How do improvements in technology and human capital influence productivity, economic growth, and standard of living within an economy?(2 points)
1) Improvements in technology can lead to increased productivity within an economy. This is because advanced technology allows for more efficient processes, automation of tasks, and the ability to produce more output with the same amount of inputs. When productivity increases, more goods and services can be produced, leading to economic growth.
2) Human capital refers to the knowledge, skills, and abilities of the workforce. When individuals have higher levels of education, training, and experience, they are more productive and can contribute more to the economy. Enhancing human capital through investments in education and training can lead to higher economic growth and improved standard of living. Well-educated and skilled workers are typically more innovative, adaptable, and better equipped to take advantage of technological advancements, which ultimately drives productivity growth.