Human Capital Can Be Increased Through

question 2

Multiple Choice

Human capital can be increased through

• A) investment in new machinery.
• B) education, on-the-job training and work experience.
• C) increasing the nation's production of consumption goods.
• D) decreases in population.
• E) investment in new technology.

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Definitions:

Effective Annual Rate

The actual return on an investment or the real rate of interest on a loan, taking into account the effect of compounding over a period.

Amortized Loan

An amortized loan is a loan where the principal is paid down over the life of the loan, typically through equal payments.

Present Value

The equivalent value today of cash flows or a sum of money anticipated in the future, using a predetermined return rate.

Annuity

A financial product that pays out a fixed stream of payments to an individual, primarily used as an income stream for retirees.