Question

Options for CATEGORY: ( Human Capital - Physical Capital - Technology - Natural resources )

Options for EFFECT ON ECONOMIC DEVELOPMENT: ( Increase - Decrease )

A number of factors can affect productivity and economic development. Assign the following items to the appropriate factor category and state whether the effect would increase or decrease economic development. a. A hurricane destroys several oil refineries on the Gulf Coast. Category: (Click to select) 9 Effect on economic development: (Click to select) b. A computer software glitch causes a factory's production line to shut down for 5 hours. Category: (Click to select) ) Effect on economic development: (Click to select) c. A new oil field is discovered in western North Dakota. Category: (Click to select) Effect on economic development: (Click to select) 9 d. A new drilling rig can extract oil more quickly from wells. Category: (Click to select) Effect on economic development: (Click to select) e. Children in a high-crime area miss school due to safety concerns. Category: (Click to select) 9 Effect on economic development: (Click to select) 9 f. A neuroscientist publishes a journal article on a process for improving students' retention. Category: (Click to select) ) Effect on economic development: (Click to select)

Answer 1

Ans) Human capital includes skill, knowledge and experience possessed by humans.

Physical capital includes machines, building, equipments and other human made capital.

Natural resources are naturally occurring resources which are provided by the nature.

Technology is something which helps to produce things in better, faster and efficient way.

Any increase in above factors of production will increase economic development while any decrease in these factors of production will decline the economic development.

1) Oil refinery is physical capital.

Its destruction will decrease economic development.

2) A glitch in computer software, that causes production line to shut down is technological issue.

It will also decrease the economic development.

3) New oil field is natural resource.

It will increase economic development.

4) New drilling rig is a technology which is making the process faster.

It will increase economic development.

5) Children missing school will result in deterioration of human capital as there will be lack of skills and knowledge.

It will decrease economic growth.

6) Improving students retention means improving human capital.

It will increase economic development.