

Investing in Education and Capital
Flashcard
•
Financial Education
•
11th Grade
•
Practice Problem
•
Hard
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12 questions
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1.
FLASHCARD QUESTION
Front
Why does a firm invest in physical capital?
Back
To increase the productivity of its employees
2.
FLASHCARD QUESTION
Front
What is the primary reason people invest in human capital?
Back
To increase productivity and earn higher income
3.
FLASHCARD QUESTION
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
4.
FLASHCARD QUESTION
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
5.
FLASHCARD QUESTION
Front
When considering an investment, why is it important to think about the cost?
Back
Because the cost affects the return on investment
6.
FLASHCARD QUESTION
Front
Evaluate the impact of education on job opportunities.
Back
More education generally increases job opportunities
7.
FLASHCARD QUESTION
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
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