Investment in Human Capital

question 124

Multiple Choice

Investment in human capital

• A) is quite different from and has a much lower return than investment in physical capital.
• B) is just like investment in physical capital and has a return similar to that earned from other investments.
• C) is just like investment in physical capital but has a much greater return than do other investments.
• D) is not comparable to other investments in any way since human capital is embodied in the person.

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Definitions:

Monopoly

A market structure characterized by a single seller who has exclusive control over the supply of a good or service, and where entry of new competitors is obstructed.

Perfect Competitor

An idealized market structure characterized by a large number of small firms, each being a price taker, with no single firm able to influence the market price.

Long Run

A period in economics where all factors of production and costs are variable, allowing complete industry adjustment.

Marginal Revenue

The extra revenue generated from the sale of an additional unit of a product or service.