Human Capital Is

question 30

Multiple Choice

Human capital is

• A) based on only the current skills, but not the education, of a country's citizens.
• B) based on only the education, but not the current skills, of a country's citizens.
• C) based on the skills and capital of citizens and should be included in a country's wealth.
• D) difficult to measure and should therefore not be included in a country's wealth.

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Definitions:

Producer Surplus

The divergence between what producers are prepared to agree on for a sale of goods or services and the resultant financial gain.

Consumer Surplus

represents the difference between what consumers are willing to pay for a good or service and what they actually pay, indicating economic welfare.

Tax Revenue

The income generated by the government through the imposition of taxes on goods, services, income, and transactions.

Opportunity Costs

The cost of the next best alternative foregone when a decision is made to choose one option over another.