Human capital refers to the knowledge, skills, and abilities that individuals possess that are valuable in the production of goods and services. As such, human capital not only affects wages but also affects the production process. It is therefore an important factor in determining a country's economic growth and prosperity.

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Human Capital Is

Question 22

Multiple Choice

Human capital is

A) an important determinant of wages, but it does not affect the production of goods and services.
B) an important determinant of wages, and it affects the production of goods and services.
C) a specific type of physical capital.
D) very different from physical capital in that physical capital represents an investment, while human capital does not represent an investment.

Correct Answer: