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The Human Capital Model Has Strong Neo-Classical Underpinnings

Question 13

Multiple Choice

The human capital model has strong neo-classical underpinnings. Why might a heterodox economist disagree with this approach?


A) Because it is based on the assumption that most individuals have a wide degree of choice in regards to how many years of education that they obtain
B) Because one should not draw an analogy between the decision to invest in an inanimate capital project and the decision to invest in a human.
C) Because some of the predictions that flow from the model have turned out to be wrong
D) Because the earnings function that stems from the human capital model has not been empirically validated
E) Because there are certain challenges involved in the estimation of the earnings function that stems from the human capital model

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