In a population, not all workers have a high school diploma. Suppose the size of the labor force increases but a smaller percentage of the labor force has a high school diploma. It is reasonable to expect that the larger labor force will the labor force with a high school diploma will______the human capital input and the smaller percentage of _____the human capital input.
A) decrease; increase
B) decrease; decrease
C) increase; decrease
D) increase; have no effect on
E) increase; increase

Question

Quizplus · Accepted Answer

The larger labor force increases the human capital input because more people are available to work, but the smaller percentage with a high school diploma decreases the human capital input because a lower proportion of the workforce has the basic educational qualifications, potentially reducing the overall skill level.

In a Population, Not All Workers Have a High School