From the perspective of market demand, human capital investment is reflected in:

Question

Quizplus · Accepted Answer

human capital investment is reflected in a firm's willingness to pay more for more productive workers. When a company invests in their employees through training, education, and development opportunities, it increases the employees' productivity, which translates into a higher willingness to pay for such workers. Hence, option A is the correct answer. Option B is incorrect because human capital investment results in an increase in labor demand, not a decrease. Option C is also incorrect because investment in human capital will lead to an increase, not a decrease, in the marginal product of labor.

From the Perspective of Market Demand, Human Capital Investment Is