A high-school graduate who gets a college degree is adding to the economy's stock of:
A)labor.
B)capital.
C)human capital.
D)financial capital.

Question

Quizplus · Accepted Answer

The term "human capital" refers to the knowledge, skills, and abilities that individuals possess and can use in the economy. By obtaining a college degree, the individual is increasing their human capital and, therefore, contributing to the economy's stock of human capital. Labor refers to the physical and mental effort that people put into producing goods and services, while capital refers to the tools, equipment, and infrastructure used to produce those goods and services. Financial capital is the money that is used to invest in businesses and other assets. While obtaining a college degree may require financial capital, it does not add to the economy's stock of financial capital.

A High-School Graduate Who Gets a College Degree Is Adding