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What is the relationship between human capital, capital investment, and gross domestic product? Capital Investments Gross Domestic Product.

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Presentation on theme: "What is the relationship between human capital, capital investment, and gross domestic product? Capital Investments Gross Domestic Product."— Presentation transcript:

1 What is the relationship between human capital, capital investment, and gross domestic product? Capital Investments Gross Domestic Product

2 Human Capital A country or business may invest in human capital by: Investing in education Providing health care

3 Capital Investment or Capital Goods A country or business may invest in capital goods by: Purchasing machinery or technology to perform tasks required to produce the product or products for the business Purchasing supplies needed for a business

4 Gross Domestic Product The gross domestic product or (GDP) of a nation is the total value of the things produced and services provided by a country that year. GDP = private consumption + gross investment + government spending + (exports − imports), or, GDP = C + I + G + (X − M).private consumptiongross investmentgovernment spendingexportsimports

5 How does the unequal distribution of resources affect European countries? Countries need resources to supply industry with the fuel and resources needed to produce the products for the particular industry. Countries in Europe possess varying amounts of resources. Great Britain’s supplies are fading. Russia has a great amount of resources but difficulty accessing them. Germany still has a great supply of resources. Italy has few resources.

6 Conclusion In order for a country to thrive economically, they need to invest in human capital(education and healthcare) and capital goods(machinery and technology). A country’s investment in human capital, capital goods, and their resources will have a great impact on the (GDP) of that country.

7 GDP Chart

8 Investment in Human Capital(literacy rates)


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