What Is the Main Difference Between Human Capital and Physical

question 75

Multiple Choice

What is the main difference between human capital and physical capital

• A)Human capital is an important determinant of wages, but unlike physical capital, it plays no important role in the production of goods and services.
• B)Human capital is an important determinant of wages, and similar to physical capital, it plays an important role in the production of goods and services.
• C)Human capital is a specific type of physical capital.
• D)Human capital is very different from physical capital in that physical capital represents an investment, while human capital does not represent an investment.

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Definitions:

Equilibrium Quantity

The amount of goods or services available matches the amount requested at the market price.

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total benefits to society from the trade of goods or services.

Equilibrium

A state of balance where demand equals supply in a market, leading to a stable price.