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 and human capital can increase productivity within an economy by enabling workers to perform tasks more efficiently and effectively. Technology such as automation, artificial intelligence, and advanced machinery can streamline processes and reduce the amount of time and resources needed to complete tasks. This can lead to an increase in output per worker, ultimately boosting overall productivity within the economy.
2. Higher levels of human capital, which refers to the skills, knowledge, and experience of the workforce, can also contribute to economic growth and higher standards of living. A more educated and skilled workforce is better equipped to adapt to new technologies and innovations, leading to increased productivity and economic growth. Additionally, higher levels of human capital can attract investment and business activity to an economy, further spurring growth and improving living standards for the population.