Economics (AS & A Level) · May / June 2025 · Paper 12 · Question 4
A country increases its spending on education and training. It pays for this by reducing unemployment benefit payments and increasing taxes on imports of machinery. What is the likely effect of these changes?
- Ahuman capital decreases; physical capital decreases
- Bhuman capital decreases; physical capital increases
- Chuman capital increases; physical capital decreases
- Dhuman capital increases; physical capital increases
As printed in the paper
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Correct answer: C. human capital increases; physical capital decreases
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