QUESTION 4 Health is a capital good because health leads to

QUESTION 4 Health is a capital good because health leads to better job benefits and safer jobs each person is endowed with a stock of health that produces healthy time but can also depreciate people derive utility from good health health can be enhanced in the future through current activities like exercising QUESTION 5 Health is an investment good because health can be enhanced in the future through current activities like exercising O each person is endowed with a stock of health that produces healthy time but can also depreciate people derive utility from good health higher income people have more to lose when health decreases

Solution

1) Health is a capital good because : each person is endowed with a stock of health that produces healthy time but can also depreciate . People can maintain their stock of health by leading a healthy life style .

2) Health is an investment good because : people derive utility from good health . Health can be viewed as an investment good because better health increases labor productivity, such as taking less sick days and working more.

3) large ; larger