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Investment in human capital is very similar to investing in physical capital. True or false? Explain...

Investment in human capital is very similar to investing in physical capital. True or false? Explain your answer.

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Answer #1

The answer is True

Investing in human capital is close and dissimilar to investment in physical capital. Investing in both would lead to productivity increases and ultimately income increases. They focus on ownership issues. It is difficult to own human capital as physical capital does. However, it is not possible to mathematically measure the rate of return on human capital as it is possible for physical capital.

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