What is investment in human capital?
The skills an individual chooses to develop in order to earn a living is called human capital. Acquiring new skills or improving existing ones is an investment in the same sense as a business owner's decision to build a new plant. Both will generate income over a span of years. Investments in human capital take place under uncertainty. Attending college allows a student to build up "general" human capital which can raise productivity in almost any job a graduate might take. More specific choices are riskier, because future technologies and markets are intrinsically difficult to predict.
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If the price elasticity of demand is -0.8 and the firm decreases price, revenue will
a. Increase b. Decrease c. Stay constant d. become zero, they would lose all their customers
The overall U.S. balance of payments
a. shows a deficit b. shows a surplus c. is the merchandise trade balance d. equals exports minus imports e. shows how deficits in one account are exactly offset by surpluses in other accounts
Which of the following is correct?
a. The labor-force participation rate of women has increased in part due to smaller families. b. The labor-force participation rate of men has decreased in part due to men retiring younger and living longer. c. Both a and b are correct. d. Neither a nor b is correct.
Typically, the ________ in a country, the higher the level of spending per person on health care
A) higher the level of income per person B) larger the population C) higher the level of income taxes D) lower the median age of the population