In Terms of Human Capital, Which of the Following Is

question 74

Multiple Choice

In terms of human capital, which of the following is the best example of an inherited skill?

• A) a neurosurgeon who can perform brain surgery after many years of training
• B) a salesman doubles his sales after taking a training course
• C) a worker who exercises is healthier and therefore more productive
• D) a retail worker who is able to work overtime each week
• E) a music teacher who can carry a tune for the school choir

---

Definitions:

Least-squares Regression

Least-squares regression is a statistical method used to determine the line of best fit by minimizing the sum of squares of the differences between observed and predicted values.

Variable Cost

A cost that changes in proportion to changes in the volume of activity, such as materials and labor directly involved in producing a product.

Machine Hour

A measurement of productive time, indicating how many hours a particular machine or piece of equipment has been operated.

High-low Method

In cost accounting, a strategy for estimating fixed and variable costs by looking at the peak and bottom activity levels.