Chapter 73, Problem 6MCQ

To determine

The statement which is true about human capital.

Answer to Problem 6MCQ

From the available options, the correct option is experience is a source of human capital.

Explanation of Solution

Human capital involves some elements such as experience, skills, habits, or personality traits that help the organization to achieve its goals. Human capital is an intangible source and talent covers what a natural aptitude skill employees have, which means both c and e are incorrect options. Moreover, the difference based on human capital by considering the facts of skills, knowledge, and habits are not fair because the same job would require similar characteristics of workers. Due to accounting differences in human capital, men and women are earning the same.

Therefore, the correct option is that (experience is a source of human capital).

Economics Concept Introduction

Introduction: Human capital covers the difference in skills, experience, or knowledge of workers.