Question

how to measure physical capital, labor productivity, and human capital for an economy like Switzerland. and how can we tell which one has been the main contributor to the growth and why?.

explain properly how you measure it.

Answer 1

Physical capital; one of the factors of production. This can be measured using the total future profitability in current money. Profit determined the by the level of physical capital used. Rent is the remuneration of physical capital. Measuring the rent of all these capitals can find the value of physical capital.
Labour productivity; labour productivity measured using the wage rates given to workers. Total labour productivity is measured by total output/ total number of labour per hour.
Human capital; which is measured using the modified return on investment. This return was mainly based on the interest rate. This is the level of employees who posses their knowledge, skills, experience and commitment invested.
Here, human capital is the largest contributor of economic development. Without the skills and experience of the human beings, the production level cannot acquire. This will increase the level of production and economic development. All of the above factors made a high contribution towards the economic development and GDP rate. The efficient human capital will increase the productivity and production process in industries. Interest rate is closely connected to investment in human capital. The rise in investment through falling investment which is a result of expansion of money supply will increase the production and encourage the economic development.