Which of the following is an example of human capital?
A. The Internet
B. Your ability to use Google
C. The Google search engine on the Internet
D. None of these is an example of human capital.
Answer: B
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The primary incentive for economic agents to formulate expectations rationally is to
A) increase earnings. B) increase prices. C) reduce prices. D) ensure that all expectations are realized.
An increase in the price of a good causes
A) a change in the slope of the budget line. B) an increase in the consumption of that good. C) a rightward shift of the demand curve for that good. D) a parallel rightward shift of the budget line.
When constructing a production possibility curve for an economy, which of the following is assumed to be constant?
a. The quantity of resources b. The government budget c. The quantity of goods produced d. The price level e. The money supply
If there were no factors keeping wages from reaching equilibrium then there would be no
a. cyclical unemployment. b. frictional unemployment. c. structural unemployment. d. natural rate of unemployment.