Question

In a population, not all workers have a high school diploma. Suppose the size of the labor force increases but a smaller percentage of the labor force has a high school diploma. It is reasonable to expect that the larger labor force will _________ the human capital input and the smaller percentage of the labor force with a high school diploma will _________ the human capital input.

Answer 1

Answer:

increase ; decrease

Explanation:

          Human capital is the production factor of goods and the services that is produced but the human labor.

          Human capital input is defined as the labor input of the production adjusted for quality which is related to the skills and health of the labor. The knowledge, qualifications and skills are all formed a part of the human capital that leads to the creation of goods and products.

         In the context, the larger labor force who do not have a high school degree will increase the human capital input because worker are in large number and so they will produce more products or services.

          While those workers with high school degree will decrease the human capital input because they are smaller in number hence less production output.

Therefore the answer is -- increase ; decrease