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What is human capital?

• A. Money invested in a business.

• B. The skills and knowledge a person has.

• C. Physical tools and machinery in a workplace.

• D. Natural resources like oil and minerals.

A school district pays each teacher for the work the teacher does. Which factor would most likely not affect the amount of money this school district pays a teacher?

• The level of education that the teacher has.

• The number of years the teacher has worked for the school district.

• The size of the teacher's family.

• The special skills that the teacher has.

SWBAT explain how human capital and labor influence income and describe how the availability or scarcity of resources affects costs. Stacy is describing her labor and income. Which statement could be a description of both labor and income for Stacy?

• A. Stacy pays a handyman to make repairs at her house.

• B. Stacy does volunteer work at a local animal hospital.

• C. Stacy babysits after school and earns $55.

• D. Stacy takes $50 out of her bank account and spends the money at the mall.

Denver babysits each week after school. He is paid $10 for each hour of babysitting. Which factor would most likely affect the amount of money Denver gets paid to babysit?

• The amount of money he spends on baby toys.

• The number of hours he babysits.

• If he babysits a baby boy or a baby girl.

• The time of the day he babysits.

A city pays each police officer for the work the police officer does. Which factor would most likely NOT affect the amount of money this city pays a police officer?

• The level of education that the police officer has

• The number of years the police officer has worked for the city

• The size of the police officer's family

• The special skills that the police officer has

How can improving your human capital increase your income?

• By investing in more physical capital

• By working longer hours

• By acquiring more education and skills

• By decreasing competition in the market

Why might a drought lead to higher food prices?

• Because food becomes more abundant

• Due to increased water supply

• Droughts have no impact on food prices

• Because it reduces the supply of agricultural products, making them scarcer

Why might the price of water be higher in a desert area compared to a lakeside area?

• Water is less necessary in desert areas

• Water is more abundant in desert areas

• Water quality is better in desert areas

• Water is scarcer in desert areas, increasing its cost

Why might a highly skilled worker in a rare profession earn more than a worker in a common profession?

• The job is physically easier

• The scarcity of their skills increases their value

• The job requires less education

• The worker’s personal preferences

Which person most likely earns a higher income from working at the restaurant?