Human capital refers to the skills, knowledge, and experience that people possess and that contribute to their productivity, which can be developed through investments such as education and training. It is not about using more humans than machines in production or being more costly than other forms of capital.

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Human Capital Is

Question 8

Multiple Choice

Human capital is

A) how firms use more humans than machines in the production process.
B) the accumulation of investments that make people more productive.
C) more costly than other forms of capital.
D) none of the above.

Correct Answer: