Human capital is

a. an important determinant of wages, but it does not affect the production of goods and services.

b. an important determinant of wages, and it affects the production of goods and services.

c. a specific type of physical capital made by humans rather than machines.

d. very different from physical capital in that physical capital represents an investment, while human capital does not represent an investment.

Question

Kenley Oneill

Business

16 February, 09:52

Human capital is

a. an important determinant of wages, but it does not affect the production of goods and services.

b. an important determinant of wages, and it affects the production of goods and services.

c. a specific type of physical capital made by humans rather than machines.

d. very different from physical capital in that physical capital represents an investment, while human capital does not represent an investment.

+3

Answers (1)

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Salt · Answer 1

B: an important determinant of wages, and it affects the production of goods and services.

Explanation:

Employees with their knowlege, skills and experience is valuable for a company and its economy; they they represent the company's asset, its human capital, which also includes other characteristics related to people instead of physical capital and machinery, such as: loyalty, intelligence, health, etc. The human capital has a direct relation with the produtivity and its consequent profits.