Which of the following actions is an example of an improvement in human capital? O A. Marcus hires three workers for his thriving electrical business. B. Michelle applies for a job as a mechanical engineer at Honeywell. C. Hawk Builders of Phoenix builds two new hospitals. D. Frank's Furniture trains all of its employees to use computers.

Which of the following actions is an example of an improvement in human capital? O A. Marcus hires three workers for his thriving electrical business. B. Michelle applies for a job as a mechanical engineer at Honeywell. C. Hawk Builders of Phoenix builds two new hospitals. D. Frank's Furniture trains all of its employees to use computers.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.3IP

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Which of the following actions is an example of an improvement in human capital? A. Marcus hires three workers for his thriving electrical business. B. Michelle applies for a job as a mechanical engineer at Honeywell. C. Hawk Builders of Phoenix builds two new hospitals. D. Frank's Furniture trains all of its employees to use computers.
The economic model of Human Capital Investment assumes that individuals choose their path through post-secondary education based solely on which path will provide them with the highest lifetime income. In reality, individuals often choose a path through post-secondary education that does not maximize their lifetime income, as a result of various factors. Consider Alex, an individual whose path through post-secondary education did not maximize their lifetime income. For each of the following potential reasons, construct a brief story that relates that reason to Alex's choice of post-secondary education. a) Utility/disutility from education b) Relationship between job satisfaction and education c) Uncertainty of different income streams d) Difficulty of financing human capital investments E.g. If the reason is "incomplete information", a potential answer would be: "Alex's high school guidance counsellor gave them a list of potential university programs that suited their strengths.…
How does an increase in labor-productivity increase income? a. An increase in productivity, increases the marginal product of labor which increases the demand for labor. As demand for labor increases, the wage rate increases. b. An increase in productivity, decreases the marginal product of labor which increases the demand for labor. As demand for labor increases, the wage rate increases. c. An increase in productivity, increases the marginal product of labor which decreases the demand for labor. As demand for labor decreases, the wage rate increases. d. An increase in productivity, increases the marginal product of labor which decreases the demand for labor. As demand for labor decreases, the wage rate decreases.
The work force of a certain factory is growing at rate of 2 per month while the average productivity of a worker is growing at a rate of 4 units per month. If the work force is currently 100 and the average productivity per month is 200 units, at what rate is the total productivity per month of the factory increasing? (a) What happens if the work force is declining by 2 per month? (b) What happens if the average productivity is decreasing by 5 per month?
The primary determinant of labor productivity is: a) the rate of capital investment b) the set of skills possessed by the workforce c) the rate of immigration d) a higer ratio of labor to capital investment
Which of the following would not affect labor productivity, i.e. more output per unit of labor hour? Select one: a. When interest rates decrease and government spending increase. b. when labor is reallocated from less-efficient industries to more-efficient industries. c. when production is better organized and managed d. technological progress e. the health, training, education, and motivation of workers improve f. the quantity of capital goods available to workers
What is meant by investment in human capital? Use this concept to explain (a) wage differentials and (b) the long-run rise of real wage rates in the United States.
Some types of technological changes reduce the cost of capital. Use the concepts of substitutability and complementarity to discuss how such technological change could be good for some workers and bad for other types of workers.
Which of the following is NOT an investment in human capital? Group of answer choices Older workers return to school to update their skills. Local governments begin providing free hepatitis vaccinations to any resident who wants one. The Precision Tool Company teaches all its workers how to repair all the machines in the factory. The Ferris Advertising Agency replaces its secretary's typewriters with personal computers.
Use an example to explain why, after periods of rapid growth, a low-income country that has not caught up to a high-income country may feel poor.
Instruction: Deeply discuss the following Explain what is/are the advantage might Generation Y have in terms of education and income advantage? Explain what are the key characteristics of Generation Y employees?
Why does the labor force participation rate of men decrease? The labor force participation rate of men decreases in part because _______. A. fewer men have a college degree B. families are looking more toward women to be the bread winner C. men are taking more responsibility for chores in the home D. some older men retire earlier and more younger men remain in school