Chapter 37, Problem 7MCQ

To determine

To know: Factor that affects human capital.

Answer to Problem 7MCQ

The correct option is E.

Explanation of Solution

All of the above, option E is correct.

Human capital is the possession of skills, knowledge, good health, know-how to increase the economic value of the work done. It is the value of the skills that converts work into monetary value.

A

Education increases the value in human capital as it gives the knowledge to a person. It adds value to a person by giving vast knowledge of anything to it.

B

Job training is a method to increase the human capital. It is a method to upgrade the existing skill in order to suit the requirement of the job. It involves enhancing of the existing skills, thereby human capital.

C

Work experience is the period of a person dedicated to his work. The more the number of years spent on work, the more is the experience. It enhances the skills, knowledge of the person.

D

Increased knowledge is the human capital that improves the existing skills.

Economics Concept Introduction

Introduction:

Human capital is the possession of skills, knowledge, enhancing of existing capabilities, job training to increase the economic value of the knowledge possessed by the humans.