Human capital is
A)an important determinant of wages, but it does not affect the production of goods and services.
B)an important determinant of wages, and it affects the production of goods and services.
C)a specific type of physical capital made by humans rather than machines.
D)very different from physical capital in that physical capital represents an investment, while human capital does not represent an investment.

Question

Quizplus · Accepted Answer

Human capital refers to the knowledge, skills, and abilities that individuals possess and can use to create economic value. It directly affects the production of goods and services, as individuals with more human capital are generally more productive and can create higher quality outputs. Additionally, it is an important determinant of wages, as individuals with more human capital are often able to command higher salaries due to their increased productivity and value to employers.

Human Capital Is