Question

Which of the following would be considered human capital? a. the financial capital a person earns...

Which of the following would be considered human capital?

a.

the financial capital a person earns over a lifetime of investing

b.

the machinery a worker uses to produce a product

c.

the training a worker receives when starting a new job

d.

the break room in a factory where employees go to have coffee

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Answer #1

Human capital in simple meaning is an intangible asset for the company which use to create goods and services by using his or her skill, creativity, labor force, etc

In the given question from investing over a lifetime does not satisfy the meaning of human capital

The training receives by a worker also not a human capital as he is not using his skills and learning to application

Only option B is true since the worker is using a machine for the production which satisfies the meaning of human capital

So the answer is an option B

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