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:

Enforceability

The degree to which a legal agreement or contract can be upheld and compelled by a court.

Goods-in-bailment

Items that are temporarily entrusted to another party for care, custody, or service, without transferring ownership.

Negotiable Document

A written instrument, such as a check or bill of lading, that promises payment or delivery and can be transferred to another party.

Risk of Loss

The possibility that an asset's value could decrease due to changes in the market or other factors, affecting the holder's financial position.