Which of the following supply-side theories is based on the premise that higher earnings flow to those who improve their potential productivity by investing in themselves?
A)compensating differentials theory
B)signalling theory
C)efficiency wage theory
D)human capital theory
E)reservation wage theory

Question

Quizplus · Accepted Answer

Human capital theory is based on the premise that individuals can increase their productivity and earnings by investing in their own education, skills, and health, thereby improving their potential productivity.

Which of the Following Supply-Side Theories Is Based on the Premise