What is human capital? How is it related to labor markets?
What will be an ideal response?
Human capital represents the product from investments in education, training, and other activities that increase the productivity, and thus earning of workers over a lifetime. Those workers with a high level of human capital who work in markets with a high demand for labor will enjoy a high return on their investments in human capital because they will earn high wages. Those workers with few skills or limited training have only a limited amount of human capital. They often work in labor markets for which the demand for their services is weak and thus they receive low wages.
You might also like to view...
Inflation is the increase in:
A. imports relative to exports. B. total output per worker. C. total output. D. the general level of prices.
Describe the structure of the Fed's Open Market Committee (FOMC). What is this committee's primary responsibility?
What will be an ideal response?
What is a method sellers use to combat imperfect information?
a. money back guarantees b. more advertising c. lowering the price d. more directions included with a purchase
Suppose that when the price rises by 20% for a particular good, the quantity demanded of that good falls by 10%. The price elasticity of demand for this good is equal to 2.0
a. True b. False Indicate whether the statement is true or false