Which of the Following Is True About Human Capital Theory

question 31

Multiple Choice

Which of the following is true about human capital theory?

• A)It assumes that job seekers have a reservation wage level below which they will not accept a job offer.
• B)It assumes that high wages lower labour costs if they reduce the need to supervise employees.
• C)It assumes employers deliberately design pay levels to signal desired employee behaviours.
• D)It assumes that people are paid at the value of their reservation wage, not marginal product.
• E)It assumes that improving productivity by investing in training will increase one's marginal product.

---

Definitions:

Fair Use Rule

A legal doctrine that permits limited use of copyrighted material without requiring permission from the rights holders, typically for purposes of commentary, criticism, education, or scholarship.

Copyrighted Articles

Written works that are legally protected from unauthorized reproduction, distribution, or adaptation, ensuring the original creator's rights are maintained.

Cite Sources

Refers to the practice of acknowledging the original sources of information or ideas in one's own work to maintain integrity and avoid plagiarism.

Disclosure Statement

A document that outlines important information or terms and conditions that may affect a decision or policy, often used in financial, legal, and professional contexts to ensure transparency.