What is investment in human ...

[leilurhhh]

What is investment in human capital?

Question 2

When a firm earns economic profit
 A) accounting profits are zero.
  B) market share has be capitalized.
  C) other firms enter the market.
  D) total revenue has been maximized.

[Anton]

Answer to Question 1

The skills an individual chooses to develop in order to earn a living is called human capital. Acquiring new skills or improving existing ones is an investment in the same sense as a business owner's decision to build a new plant. Both will generate income over a span of years. Investments in human capital take place under uncertainty. Attending college allows a student to build up general human capital which can raise productivity in almost any job a graduate might take. More specific choices are riskier, because future technologies and markets are intrinsically difficult to predict.

Answer to Question 2

C