Question 1
Lydia was born with an aptitude for composing music. This aptitude is an example of
◦ a compensating differential.
◦ human capital.
◦ property.
◦ natural capital.
Question 2
Earning a doctorate in environmental economics is an example of
◦ a Pareto good.
◦ a compensating differential.
◦ economic income.
◦ an investment in human capital.