Higher Levels of Human Capital Are Correlated with Higher Earnings

question 94

True/False

Higher levels of human capital are correlated with higher earnings because firms are willing to pay more for better-educated workers who have higher marginal productivities.

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Definitions:

Existentialism

A philosophical theory emphasizing individual existence, freedom, and choice, positing that individuals create the meanings of their lives.

Independent Variable

A variable that is manipulated in an experiment to see if it affects the outcome or dependent variable.

Dependent Variable

In scientific research, the variable that is tested and measured to determine if it is affected by changes in the independent variable.

Self-critical

A tendency to evaluate oneself harshly, focusing on one’s flaws and shortcomings.