Increases in Human Capital Can Come

question 117

Multiple Choice

Increases in human capital can come

• A)only from formal schooling.
• B)only from on-the-job experience.
• C)from formal education and on-the-job learning.
• D)from employing more machinery.
• E)from nowhere because whatever human capital an individual possesses is what he or she was born with.

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Definitions:

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy an asset at a specified price within a specific time period.

Exercise Price

The price at which the holder of an option can buy (call) or sell (put) the underlying security.

Risk-Free Rate

The theoretical rate of return on an investment with zero risk, often represented by the yield on government securities such as U.S. Treasury bills.