Human Capital quiz
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What property makes a skill unlike a machine?
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More questions about Human Capital
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Which investment most directly builds worker skills?
Answer: Education
Why: Spending on schooling acts like capital investment because it boosts lifetime earning potential.
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Which personal factor is treated as worker capital?
Answer: Physical health
Why: Health qualifies as human capital because it directly reduces missed work and extends working years.
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What skills are valuable across many employers?
Answer: Transferable skills
Why: Companies hesitate to fund general skill training because competing firms can poach the worker afterwards.
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Which economist first added worker skills to capital?
Answer: Adam Smith
Why: In 1776, Adam Smith compared an educated person to an expensive machine that repays its high cost through superior output.
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What main workplace metric rises as skills improve?
Answer: Productivity
Why: Skilled workers produce more output in less time, making productivity the core economic return on learning.
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What happens to human capital as technology advances?
Answer: Skill depreciation
Why: Rapid technological shifts can make hard-won techniques obsolete, eroding the value of older expertise.
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