Which of the following is true about human capital theory?
A)It assumes that job seekers have a reservation wage level below which they will not accept a job offer.
B)It assumes that high wages lower labour costs if they reduce the need to supervise employees.
C)It assumes employers deliberately design pay levels to signal desired employee behaviours.
D)It assumes that people are paid at the value of their reservation wage, not marginal product.
E)It assumes that improving productivity by investing in training will increase one's marginal product.

Question

Quizplus · Accepted Answer

Human capital theory posits that investments in education and training improve an individual's productivity, thereby increasing their marginal product and potential earnings.

Which of the Following Is True About Human Capital Theory