Which of the Following Is the Best Example of an Investment

question 22

Multiple Choice

Which of the following is the best example of an investment in human capital?

• A) an increase in the number of hours worked per week by worker in a job employing low-skilled labour
• B) the purchase of company stock by a worker
• C) payments into a retirement pension plan by a skilled labourer
• D) a summer internship at a law firm filled by someone attending law school

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Definitions:

Competitive Market

A competitive market is one where there are many buyers and sellers, so no single participant has significant power to dictate the price of goods or services.

Long Run

A period of time in which all factors of production and costs are variable, allowing for full adjustment to changes.

Profit-Maximizing Firms

Businesses that operate with the primary goal of maximizing their profit, which is achieved by increasing income while minimizing costs.

Economic Factors

The various external factors, such as inflation, interest rates, and unemployment, that influence the performance of the economy.