A Human Capital Externality Is

question 17

Multiple Choice

A human capital externality is

• A) when there is a human capital congestion effect.
• B) when human capital causes pollution.
• C) when someone purchases a book, for example.
• D) when an individual has an unique skill.
• E) when higher human capital for one person increases the human capital of others, or makes them more productive.

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Definitions:

Collectivism

A cultural value that emphasizes priority on the goals of the group rather than the individual.

Individualism

A school of thought that endorses the independence of the individual rather than submission to collective or governmental constraints.

Self-efficacy

The belief in one's ability to succeed in specific situations or accomplish a task.

Self-image

An individual's mental representation of themselves, which includes perceptions, thoughts, and feelings about their abilities and characteristics.