This topic contains a solution. Click here to go to the answer

Author Question: What is human capital? How is it important in the determination of a worker's wage rate? What ... (Read 176 times)

yoooooman

  • Hero Member
  • *****
  • Posts: 557
What is human capital? How is it important in the determination of a worker's wage rate?
 
  What will be an ideal response?

Question 2

In an indifference curve/budget line framework, how does a consumer decide which of all possible combinations of goods to purchase?
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

juliaf

  • Sr. Member
  • ****
  • Posts: 344
Answer to Question 1

Human capital is the skill, education, and training that a person acquires. The more human capital a person has, the higher the person's productivity and hence the higher the person's value of the marginal product. A higher value of the marginal product increases the demand for the worker and leads to a higher wage rate.

Answer to Question 2

The consumer will select the combination of goods and services that he or she most prefers and which he or she can afford to buy. Taking the latter consideration first, the consumer will buy a combination of goods and services that lie upon the budget line because all of these combinations are affordable. From the combinations that lie upon the budget line, the consumer will select the combination that is on the highest indifference curve because this is the combination that is most preferred.




yoooooman

  • Member
  • Posts: 557
Reply 2 on: Jun 29, 2018
:D TYSM


  • Member
  • Posts:
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Did you know?

Cyanide works by making the human body unable to use oxygen.

Did you know?

Carbamazepine can interfere with the results of home pregnancy tests. If you are taking carbamazepine, do not try to test for pregnancy at home.

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

For a complete list of videos, visit our video library