Which of the following is a distinction between general and specific human capital?
A. General human capital consists of training and education that is valued by different firms, whereas specific human capital is more valuable to the current employer.
B. General human capital leads to self-selection on the basis of risk preference, whereas specific human capital leads to the adverse selection problem.
C. General human capital enables workers to earn compensating wage differentials, whereas workers with specific human capital earn the competitive wage rate.
D. General human capital leads to higher labor costs, whereas specific human capital leads to higher turnover costs.
Answer: A
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