Question : Which factor affects the quality of human capital in an economy?
Option 1: Income inequality
Option 2: Natural disasters
Option 3: Government regulations
Option 4: Global economic trends
Correct Answer: Income inequality
Solution : The correct answer is (a) Income inequality.
Income inequality refers to the unequal distribution of income among individuals or households within a society. It can have significant implications for the quality of human capital, which represents the knowledge, skills, education, health, and other attributes of individuals that contribute to their productivity and potential economic contribution.
High levels of income inequality can have adverse effects on the quality of human capital in several ways. Firstly, it can limit access to quality education and healthcare for individuals from lower-income backgrounds, leading to disparities in skills and health outcomes. Limited access to educational opportunities and healthcare can hinder the development of human capital and reduce productivity in the economy.
Question : Human capital formation leads to:
Option 1: Increased unemployment rates
Option 2: Decreased economic growth
Option 3: Higher productivity levels
Option 4: Greater income inequality
Question : Which type of capital is considered the most crucial for sustained economic growth?
Option 1: Financial capital
Option 2: Physical capital
Option 3: Natural capital
Option 4: Human capital
Question : Which of the following is an example of a technical factor that can impact foreign exchange rates?
Option 1: Government policies
Option 2: Economic indicators
Option 3: Market psychology
Option 4: Natural disasters
Question : How is economic inequality related to globalization?
Option 1: Globalization has uniformly reduced economic inequality
Option 2: Globalization has exacerbated economic inequality within and between countries
Option 3: Globalization has no impact on economic inequality
Option 4: Globalization has only affected inequality in developed countries
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