The determinants of productivity
Suppose there is a simple hypothetical economy in which the only industry is publishing. In the publishing field, productivity the amount of goods and services a worker can produce per hour—is measured by the number of pages one editor reads per hour.
In the following table, select the appropriate productivity determinant that represents each example.
|Human Capital per Worker
|Natural Resources per Worker
|Physical Capital per Worker
|The presses used to print books
|The knowledge workers receive from advanced writing workshops
|The trees used to create pulp contributing to paper production
|An autoscroll screen function that allows editors to read more efficiently
Explantion: Human capital is the knowledge and skills that workers acquire through training, education, and experience. Human capital is distinct from Technological knowledge, which is society's understanding of how the world works. Human capital measures the resources expended (years of training, education, or experience) transmitting society's technological knowledge to workers. Natural resources are the inputs into the production of goods and services that are provided by nature, such as land, bodies of water, forests, and mineral deposits. Physical capital is the stock of tools, machinery, equipment, and structures that are used to produce goods and services.