Personal Finance 3.01

Individuals with more formal educational training usually have:

• higher estimated lifetime earnings.

• lower personal satisfaction.

• greater amounts of leisure time.

• more comfortable work environments.

Miranda is working to develop a broad base of transferable skills. This means that she:

• needs to maintain at least a part time job during the school year.

• should use her available hours outside of school for paid employment rather than volunteering.

• will not have as much time to develop her human capital.

• will have a set of versatile skills that she can apply to many personal and professional roles.

One’s lifestyle is to their standard of living as present is to:

• past.

• recent.

• future.

• gift.

Lora is a high school computer and technology teacher. She enrolls in a computer class at least twice per year to stay current on recent technology changes and updates. By continuing her education, Lora is investing in her:

• salary.

• human capital.

• family.

• interest inventory.

Eric is writing a paper on the importance of investing in yourself and he is looking for a sentence to use as the thesis statement for his paper. Which sentence below would be the best choice?

• Completing your college degree is the best way to prepare for a career.

• Education pays in higher earnings and lower unemployment rates.

• Human capital and transferable skills result from formal training.

• Investing in yourself too early can lead to a lower standard of living.

Which statement is not true?

• Most people have several careers throughout their lifetime.

• Jobs are paid positions.

• People can develop human capital in a variety of ways.

• Transferable skills can be applied to many personal and professional roles.

Jose has been challenged by his academic advisor to develop some human capital this school year. Which activity would be the least effective way to reach that goal?

• Spend additional time playing video games to further develop his eye-hand coordination.

• Volunteer to pick up trash along the roadsides.

• Attend a workshop on a topic he has little knowledge of.

• Ask his employer if there are any new tasks at work that he might be assigned.

An example of a transferable skill is a skill:

• used in your job that you acquired through past jobs, volunteering, hobbies, school sports, or other life experiences.

• that can only be used in an individual’s job or career.

• that each employer requires you to learn.

• that is learned at one job and is required at other jobs as well.