Investment

By : Christie Nance ,Elizabeth Rodgers , and

Tabia Crumbley
 Standard

Explain the relationship between the investment in

human capital (education and training ) and gross
domestic product (GDP )
 Essential Questions

What is the relationship between the investment

in human capitol ( education and training ) and
gross domestic product ( GDP ) ?
 What is a a human capital ?

Human capital is the stock of skills and knowledge

( aka) education and training.
The GDP is a measure of country's economic
performance .
 Answer to Essential Question

The Human Capital sometimes effects the GDP because of the diversity of the
different education systems.The diversity of the human capital achieved by the
odd ability increase GDP
If the produced intermediate goods are sufficiently substitutable and firms have a large span of
control. Hence, as public education equalizes education resources across households, it
mitigates the negative effect of income inequality on GDP, while the effects of ability tracking
crucially depend on the production structure of the economy.
 Thnks

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