Increases in human capital can be achieved by which of the following?

• A. Increasing the supply of physical capital
• B. Investing in education and training programs
• C. Expanding the use of natural resources
• D. Raising the minimum wage

Answer: (B)

Verified step by step guidance

1. Understand the concept of human capital: Human capital refers to the skills, knowledge, and experience possessed by an individual or population, which can be enhanced through education and training.
2. Identify the options that directly affect human capital: Increasing the supply of physical capital and expanding natural resources relate to physical and natural capital, not human capital.
3. Recognize that investing in education and training programs directly improves the skills and knowledge of workers, thereby increasing human capital.
4. Note that raising the minimum wage affects income levels but does not inherently increase the skills or knowledge of workers, so it does not increase human capital.
5. Conclude that the correct way to increase human capital is by investing in education and training programs, as this directly enhances the productive capabilities of individuals.