Human Capital

Human capital is the skills, knowledge and experience of workers.

• True

• False

Individuals invest in human capital by purchasing goods and services. 

• True

• False

Human capital is when a worker is using capital equipment.

• True

• False

A worker with more human capital tends to earn--

• the same salary

• a lower salary

• a higher salary

• less benefits

Which of the following are considered soft skills for workers?

• teamwork, communication, software proficiency

• teamwork, communication, getting along with other people

• teamwork, fluency in a second language, getting along with other people

• mathematical skills, communication, getting along with other people

An example of a worker improving their human capital is which of the following?

• working longer hours

• spending time at leisure

• attending community college

• attending a concert

By attending college, you sacrifice the income that could have been earned. This is called--

• opportunity cost

• opportunity benefit

Human capital is associated with the resource of--

• capital

• labor

• land

A worker with more human capital can produce--

• less goods and services

• more goods and services

• the same amount of goods and services.

Finishing ALMOST everything required for a degree without getting a diploma can prevent a person from getting a job. This is called the--

• Sheepskin Effect

• Diploma Requirement