Human Capital and Social Capital Are Vital for Superior Firm

question 28

Multiple Choice

Human capital and social capital are vital for superior firm performance.If a firm has strong human capital,the firm may exploit this by building social capital.This can be accomplished by

• A) requiring workers to work independently of each other.
• B) decreasing the interaction of departments within the firm.
• C) encouraging the sharing of ideas between employees in the firm.
• D) structuring the firm with rigid departmental and employee divisions.

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Definitions:

Marginal Productivity

The additional output resulting from a one-unit increase in the input of a particular factor of production, while holding other inputs constant.

Labor Demand Curve

A curve representing the quantity of labor that employers wish to hire at different wage rates.

Technological Advances

Innovations and improvements in technology that enhance efficiency, productivity, or quality in goods and services.

World Price

The price of a good that prevails in the world market for that good.