ECONOMICS
HUMAN CAPITAL
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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moving to a new town
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paying rent to a landlord
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taking out high-interest loans
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developing marketable skills
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Detailed explanation-1: -Investments in education are recognized by the scientific community as the most common and studied among all types of investing in people.
Detailed explanation-2: -Human capital is the sum of people’s skills, abilities, health, knowledge, and motivation. By increasing your knowledge and skills through investment in your own education, you can earn higher salaries and lower your chance of being unemployed.
Detailed explanation-3: -The concept of human capital investment is mainly investment done by a firm or an individual on education/training and to expect a return of that investment in terms of revenue/capital. Human capital consists of three main components: ability, earlier education, and knowledge gained by training on job premises.
Detailed explanation-4: -To investors, human capital is the present value of all future wages. You can increase your human capital by continuing your education or going for on-the-job-training. Human capital should be a key driver for the portfolio needs of an investor and should be hedged by financial capital. More items