Why is knowledge considered a type of capital?

What will be an ideal response?


Knowledge is human capital. Knowledge is considered capital because it yields valuable services to a firm over time in the same way that other types of capital (such as machinery) do.

Economics

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Instrument independence is the ability of ________ to set monetary policy ________

A) the central bank; goals B) Congress; goals C) Congress; instruments D) the central bank; instruments

Economics

Which of the following is an example of cyclical unemployment?

a. A recent college graduate still looking for her first job b. A car salesman who loses his job because of a recession c. A ski instructor who is out of work during the summer d. An economics journalist who just quit her writing job in order to begin a new career as a college professor next month e. A worker displaced from his factory job because of greater mechanization in the workplace

Economics

Shares of ownership in corporations are referred to as:

A. stocks. B. collateral. C. limited liability. D. bonds.

Economics

The age-earning cycle usually begins

A. only when a worker is employed full time. B. at relatively low income levels. C. once a worker reaches 25 years of age. D. at relatively high income levels.

Economics