Human Capital, Labor, and Income

Managing money is a difficult task for
many people. Often people spend all the
money they have and then worry about
what to do when something
unexpected happens.

In this lesson, we will explain the
connection between human
capital/labor and income.

What is

human capital?

Human capital is the skills,
knowledge, and experience a
person may have which shows
their value to a country or
organization.

Multiple Choice

Which of the following includes the knowledge, skills, education, and talent people bring to work?

• Capital resources

• Natural resources

• Financial capital

• Human capital

Multiple Choice

Which of the following improves human capital?

• Shopping Habits

• Education

• Age

• Family Size

Multiple Choice

Which of the following does NOT improve human capital?

• Leadership Skills

• Education

• Experience

• Height

Okay…so…

what is labor?

Labor is the hard work, strong
effort, or struggle one performs
in order to complete a task that
pays the worker an income.

Multiple Choice

What is the work that a person does to earn an income?

• Labor

• Income

• Credit

• Salary

What is an

income?

Income is money received in
exchange for providing
a good or service. It might
also be called a salary, wage
or earnings.

Multiple Choice

What is income?

• The amount of bills a person pays monthly.

• The amount of loans a person borrows from a bank yearly.

• The amount a money an employer pays to an employee on a fixed basis.

• The number of hours an employee works per week.

Multiple Select

What is another word for income?

• Hours

• Salary

• Services

• Wages

• Earnings

Multiple Choice

Alberto works at a pet shop. The pet shop pays him every week for the work he does. Some weeks he works less hours than other weeks. Which statement is likely true?

• When Alberto works less hours, he earns more income from the pet shop.

• When Alberto works more hours, he earns more income from the pet shop.

• When Alberto works less hours, the pet shop gets more labor from him.

• When Alberto works more hours, he earns less income from the pet shop.

Time to Work!

Show me

What you know!

Multiple Choice

Ms. Davis works for a company as an engineer. Which factor would most likely affect the amount of money Ms. Davis gets paid by the company?

• the number of siblings Ms. Davis has

• the amount of money Ms. Davis has in her checking account

• the experience Ms. Davis has an an engineer

• the amount of money Ms. Davis pays in bills each month

Multiple Choice

A school district has a shortage of teachers. What is one way that the school district can get more people to apply for teaching positions?

• Increase teachers' salaries

• Increase the number of duties teachers are required to complete daily

• Decrease teachers' pay

• Increase the number of hours teachers work each day

Multiple Choice

Ricky works for company in his city. Which of the following is NOT a reason for the

company to pay Ricky a higher wage over the other employees?

• Ricky has more experience at his position than his coworkers.

• Ricky has more educational credentials than his coworkers.

• Ricky has worked more years at the company than his coworkers.

• Ricky lives the closest to the company.

Multiple Choice

Crystal wants to become a nurse. Which of the following is a way for Crystal to

increase her human capital?

• Crystal should go to college and to get an art degree

• Crystal should watch videos on how to fix computers

• Crystal should volunteer at the hospital

• None of the above

Multiple Choice

Which of the following is NOT an example of wages?

• Jake works at a pharmacy and gets paid $15 each hour.

• Brenda's yearly salary as a veterinarian is $72,000

• Fernando spent $250 when he went shopping at the mall.

• Nathan weekly's pay as a pet groomer is $450.