Question

How do improvements in technology and human capital influence productivity, economic growth, and standard of living within an economy? Respond in 3 sentences(2 points)

Answer 1

Improvements in technology enhance productivity by enabling more efficient processes and innovation, leading to greater output with the same or fewer resources. Similarly, advancements in human capital, through better education and skills training, equip the workforce to adapt to and effectively utilize new technologies, driving economic growth. As both productivity and economic growth increase, the overall standard of living improves, as higher incomes and better access to goods and services become attainable for a larger segment of the population.