2) Compare and contrast human capital, H, and physical capital, K. How is H different from labour, L?

3) Indicate whether the following statement is TRUE or FALSE and explain your answer: 'Consider three inputs of production: labour, physical capital and natural resources, and an economy with decreasing returns to scale. If you increase all three inputs x times then the total gross domestic product (GDP) in the economy will increase exactly x times, but GDP per capita will decrease.'