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When a firm builds a new factory, this is an example of an investment in:

a. human capital.

b. physical capital.

c. the market.

d. research and development.


Sagot :

The correct Option is A. Human capital ,

Human capital is the stock of assets that comprises knowledge, skills, creativity, personality traits, education, and training. These all aided in building human capital. When a business invests in human capital, its main goal is to raise employee productivity by enhancing their skills and knowledge. Capital stock of each employee: Considering all other factors to be equal, an economy with more physical capital can generate more than one with less. Greater economic expansion results from increased capital investment because savings and investments add more capital to the stock.

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