Question

You work for an architectural firm where your job involves designing buildings and writing computer code for the building plans. How does your decision to invest in on-the-job training affect your ability to do your job? Which of the graphs best represents the expected shift in your PPF if you make the investment in human capital?

A.

Building Designs PPF PF Lines of Computer Code

B.

C

D

Answer 1

Answer

The investment in on-the-job training will increase my knowledge both in designing buildings and writing computer code for the building plans. As a result, the training will increase my skill and ability to do the job.

The graph A best represents the expected shift in my PPF if I make the investment in human capital.

The human capital includes the human intellect, skill or efficiency, knowledge, education,good health, etc. The human capital is an asset of an economy and, a company or firm. If there is an investment in human capital, it will develop human intellect, and will increase human skill and efficiency, knowledge, etc. As a result the productivity will rise with the development in designing building, and writing computer code for the building plans. The rise in productivity will increase the total production. As the total production rises, the PPF will shift rightward from PPF₁ to PPF₂.

Buildins Designs pPFe 71 Lines a computer Code

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