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:

Working Memory

A newer understanding of short-term memory that adds conscious, active processing of incoming sensory information, and of information retrieved from long-term memory.

Achievement Test

A test designed to assess what a person has learned.

Driver's License

An official document permitting a specific individual to operate one or more types of motorized vehicles on public roads.

Aptitude Tests

Standardized tests designed to measure an individual's potential to acquire skills and knowledge.