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 lead to increased productivity within an economy. By adopting new technologies and tools, businesses can produce more goods and services in less time, leading to higher output levels. This increased productivity can result in economic growth as businesses can expand their operations and create more jobs, ultimately driving overall economic growth.
2. Investments in human capital, such as education and training programs, also play a crucial role in improving productivity and economic growth. A more skilled and knowledgeable workforce can adapt to new technologies and innovate more effectively, leading to increased efficiency and competitiveness. As a result, the standard of living within an economy can improve as individuals have access to higher-paying jobs and better career opportunities. Additionally, a more educated workforce can contribute to a more dynamic and resilient economy that is better equipped to navigate challenges and remain competitive in the global market.