Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 7: Q 18. (page 186)

What is capital deepening?

Short Answer

Expert verified

Capital deepening refers to a situation where the level of capital per worker is increasing in the economy.

Step by step solution

01

Step 1. Defines capital

All man-made goods that are utilised in the continuing production of wealth are referred to as capital. In economics, capital refers to tangible assets such as machinery and equipment used in the production of goods. A person's or a company's capital is frequently characterized as their wealth or financial power.

02

Step 2. Defines capital deepening.

The term "capital deepening" refers to a situation in which the amount of capital per worker in the economy is increasing. Capital deepening can take the shape of more human capital per worker or more physical capital per worker.

Machines and structures are examples of physical capital, while skills, knowledge, and education are examples of human capital.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Change in labor productivity is one of the most watched international statistics of growth. Visit the St. Louis Federal Reserve website and find the data section (http://research.stlouisfed.org). Find international comparisons of labor productivity, listed under the FRED Economic database (Growth Rate of Total Labor Productivity), and compare two countries in the recent past. State what you think the reasons for differences in labor productivity could be.

Describe some of the political and social tradeoffs that might occur when a less developed country adopts a strategy to promote labor force participation and

economic growth via investment in girls’ education.

Why is investing in girls’ education beneficial for growth?

What policies can the government of a free-market economy implement to stimulate economic growth?

Say that the average worker in Canada has a productivity level of \(30per hour while the average worker in the United Kingdom has a productivity level of \)25per hour (both measured in U.S. dollars). Over the next five years, say that worker productivity in Canada grows at 1%per year while worker productivity in the UK grows 3%per year. After five years, who will have the higher productivity level, and by how much?
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free