All else equal, which of the following would tend to cause GDP per person to rise?
A)high population growth
B)investment in human capital
C)rapid growth in the number of workers
D)policies to reduce imports

Question

Quizplus · Accepted Answer

Investment in human capital, such as education and training programs, leads to an increase in worker productivity and skills, which can lead to higher GDP per person. A high population growth rate (A) could lead to strains on resources and potentially lower GDP per person. Rapid growth in the number of workers (C) may increase GDP, but only if it is coupled with investment in physical and human capital. Policies to reduce imports (D) would have a negligible effect on GDP per person, as imports are already subtracted from GDP calculations.

All Else Equal, Which of the Following Would Tend to Cause