Question : Which of the following is an example of technological progress contributing to human capital formation?
Option 1: The automation of manual labor tasks
Option 2: The depletion of natural resources
Option 3: The expansion of the agricultural sector
Option 4: The decrease in educational attainment levels
Correct Answer: The automation of manual labor tasks
Solution : The correct answer is (a) The automation of manual labor tasks.
Technological progress plays a significant role in human capital formation by contributing to the development and enhancement of skills, knowledge, and productivity. The automation of manual labor tasks through the use of technology leads to increased efficiency, higher productivity, and the need for workers to acquire new skills.
When manual tasks are automated, individuals need to develop and acquire skills that are in demand in a technologically advanced economy. This may involve learning how to operate and maintain automated systems, programming and coding, data analysis, problem-solving, and other skills related to emerging technologies.
By automating repetitive and mundane tasks, technology frees up human capital to focus on more complex and value-added activities. This leads to increased productivity, economic growth, and the potential for higher wages and living standards.