Question

Opportunity Cost, Scarcity, Production Efficiency, Allocative Efficiency, Incentives, Human Capital, Specialization, and Comparative Advantage General Instructions: Choose one concept from the list above, and write a paper a 350 to 500 word paper (350 words, is the absolute minimum) in which you state a response to the following prompt "Before participating in the Graded Discussion 1, I thought about (one of the concepts from the list) in this waynow I think..." You are free to organize and arrange your sentences and paragraphs in any you see fit, but your response MUST at least have the following 5 elements: It must state and define the concept or idea. It must explain how you viewed or understood the concept before this class. It must explain your new way of viewing, or understanding the concept. It must say the reason why your perspective, or understanding changed. In other words, what did you do, see, or hear as a result of this class that helped transform your opinion. It must have information, data or facts, that supports the reason for your change. The information, data or facts can be presented in the form of an example, or

Answer 1

Human Capital: Human capital is the summation of skills, talent, educational qualification, creativity, innovative ideas which has an economic value for a nation and company.

Human capital is a factor of production which increases the economic growth with increase in the investment in its skills, training, education and this resultantly increases its productivity and economic growth, that's why nations around the world subsidise the education in order to boost its economic growth. Higher education fetches high number of opportunities for the individual and fetches them higher salaries since organizations value them since they relate them with their growth since these highly educated people will bring them increased productivity, quality, innovative ideas, creativity and future growth.

Human capital term was first used by Jacob Mincer in his article "Investment in Human capital and Personal Income Distribution" in 1958. Gary Becker has also contributed to the idea of Human Capital in his book "Human Capital" in 1964 who was an economist and noble prize winner from the university of Chicago. Theodore Schultz has also contributed to the development of idea of Human Capital.

Human capital can be distributed into three parts: 1 Intellectual Capital, 2 Social Capital, 3 Emotional Capital

Human capital is managed by Human Resource departments of the companies/business firms and their work is to give them adequate training(skills training, soft skills training, email etiquette training), recruitment, retention policy, reward policy, etc.) and this all contributes into enhancement in the skills, growth of the company and to achieve its future goals.

Human capital when given recognition and valued and given opportunity to participate in decision making process in an organization feels engaged and happily contributes their innovative ideas, creativity for the growth of the company.

HCI(Human Capital Index) which is published by World Bank for every country for which data is available and assign values to the companies as per their given performance data.

For example USA has overall 0.76 HCI for 2018 and for boys it is 0.73 and for girls it is 0.76 and survival to age 5 is 0.99 and for boys it is 0.99 and for girls it is 0.99 and adult survival rate is 0.9

USA is a high income country which has good relation with its HCI and HCI's overall score reflects its economic growth and the nation which has invested in its human capital has growth economically and ranks high on world bank's HCI.