Economists refer to expenditures on training, education, and skill development designed to increase the productivity of an individual as
A) overhead expenditures.
B) investments in human capital.
C) sunk expenditures.
D) social capital.

Question

Quizplus · Accepted Answer

Economists refer to expenditures on training, education, and skill development as investments in human capital, since they are intended to increase the productivity and potential earning power of an individual over their career. Sunk expenditures refer to costs that have already been incurred and cannot be recovered, overhead expenditures refer to ongoing operating costs, and social capital refers to the value derived from social connections and relationships.

Economists Refer to Expenditures on Training, Education, and Skill Development