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:

Synergy

A positive force that occurs in groups when group members are stimulated to produce new solutions to problems through the process of mutual influence and encouragement within the group.

Cognitive Consonance

An error in key-term, possibly meant "Cognitive Dissonance." NO.

Creativity

The ability to produce original, innovative ideas, solutions, or products through imaginative thinking and problem-solving.

Intuition

The ability to understand or know something immediately, based on feelings rather than facts or evidence.