Increased productivity results from investments in human capital, capital goods, and technology. Investments in human capital through education and training allow workers to produce more efficiently. Capital goods investments provide workers with tools and machinery to improve productivity. Research and development leads to technological advances and improved processes that boost productivity.

1. Role of Producers & Consumers in a Market Economy EPF2g. How Investment in Human Capital, Capital Goods, and Technology Can Increase Productivity

2. Increased productivity results from: Advances in technology Improvements in physical and human capital 2

3. Essential question: How do investments in human capital improve productivity? 3

4. Human Capital Investments People invest in their human capital through education, training and experience Through investment in human capital, workers learn how to produce more efficiently, thus increasing productivity. 4

5. Essential question: How do investments in capital goods improve productivity? 5

6. Capital Goods Investments Workers can also improve their productivity by using physical capital (or real capital), such as tools and machinery. 6

7. Essential question: How do investments in technology improve productivity? 7

8. Technology Investments Research and development can lead to increased productivity. Technological change can lead to increased productivity. Improvements in processes and procedures can lead to increased productivity. 8

9. SUMMARY: Economic growth varies across countries because of differences in human and physical capital investments, and technologies. 9