Investing in Education and Capital

Front

Why does a firm invest in physical capital?

Back

To increase the productivity of its employees

Front

What is the primary reason people invest in human capital?

Back

To increase productivity and earn higher income

Front

What is the college wage premium?

Back

The percent increase in earnings for those with a bachelor's degree compared to those with only a high school diploma

Front

Explain why it is important to consider the income earning potential of various college degree programs.

Back

Because different programs have vastly different projected incomes and job opportunities

Front

When considering an investment, why is it important to think about the cost?

Back

Because the cost affects the return on investment

Front

Evaluate the impact of education on job opportunities.

Back

More education generally increases job opportunities

Front

What additional benefit does investing in human capital provide beyond increased productivity? Options: Decreased work hours, Increased job opportunities, Guaranteed job security, Higher leisure time

Back

Increased job opportunities

Front

Why might students consider vocational, technical, and trade schools?

Back

They provide specific skills that can lead to immediate job opportunities.

Front

What is the relationship between education level and unemployment rate?

Back

Higher education levels lead to lower unemployment rates.

Front

Discuss the importance of considering both costs and potential earnings when choosing a college degree program.

Back

Both costs and potential earnings should be considered to make an informed decision.