Human capital is
A)a stock of equipment and structures.
B)the result of investments workers make in themselves such as on-the-job training.
C)a difference in wages that arises to offset the nonmonetary characteristics of different jobs.
D)inversely related to the supply of workers.

Question

Quizplus · Accepted Answer

Human capital refers to the knowledge, skills, and experiences that workers possess, which can be developed through investments in education and training, both on-the-job and off-the-job. Therefore, option B is the correct definition of human capital. Option A refers to physical capital, while option C refers to compensating wage differentials, and option D is not true as the supply of workers is not directly related to the amount of human capital in the economy.

Human Capital Is