Human Capital and the Labor Market

Which action would MOST LIKELY result in a higher income?

• Graduating from college

• Buying a new car

• Living in a small town

• Lending a friend money

Which of these MOST often results from additional education?

• higher income

• higher cost of living

• fewer job opportunities

• fewer developed skills

Which action would MOST LIKELY lead to increased income?

• owning a large house

• retiring at a young age

• graduating from college

• traveling around the world

Which action will MOST LIKELY lead a person to increase personal wealth?

• earning a higher income

• spending more on expenses

• traveling around the world

• taking out high-interest loans

How can a person increase their chances of finding a job in the workforce?

• develop marketable skills

• accumulate personal debt

• demand high wages

• leave school early

Which is the BEST way for a person to invest in their human capital?

• moving to a new town

• paying rent to a landlord

• taking out high-interest loans

• developing marketable skills

Which phrase BEST explains the difference in salaries between these occupations?

• the average laborer's years of experience

• the required level of education

• the physical demands of the work performed

• the risks of laborers at the workplace

Which reason BEST explains the difference in salary among these professions?

• Education requirements limit the supply of available employees

• There is less demand for lower-paid employees

• Travel requirements affect the net income of employees

• Employees restrict hiring to encourage greater competition

Which of the following best describes human capital?

• The total amount of wealth a person owns

• The skills and knowledge an individual possesses

• The number of workers a business employs

• The amount of education required for a job

Which conclusion can be supported by the information in this graph?

• People with a professional degree earn more than twice as much than people with only a bachelor's degree

• People with a master's degree earn nearly twice as much as people with only a high school education

• People with a doctoral degree are half as likely to be unemployed as people with a bachelor's degree

• People with some college education are half as likely to be unemployed as people with only some high school education