Human capital represents the accumulation of investments in people, such as education and on-the-job training. Choice B is incorrect because both humans and machines can build physical capital. Choice C is incorrect because human capital is an essential ingredient in the production process and complements physical capital.

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Human Capital

Question 24

Multiple Choice

Human capital

A) represents the accumulation of investments in people, such as education and on-the-job training.
B) represents the types of capital built by people rather than by machines.
C) is less important to the economy's production than physical capital.
D) Both a and b are correct.

Correct Answer: