Asked by Kayla Kirkpatrick on May 30, 2024
Verified
What is human capital? How is it related to one's future earnings?
Human Capital
The combined abilities, expertise, and non-physical assets of people that can be leveraged to generate economic worth.
Future Earnings
Refers to the projected income or profits that an individual, company, or asset is expected to generate in the future.
- Explain the concept of human capital and its importance for wage determination and economic prosperity.
Verified Answer
SB
Sarah BustinMay 31, 2024
Final Answer :
Human capital is the knowledge and skills that make a person productive. It is the accumulation of outcomes of prior investments in education, training, and other factors that increase productivity and earnings. A valuable stock of human capital along with a strong demand for one's services can lead to larger future incomes over one's career.
Learning Objectives
- Explain the concept of human capital and its importance for wage determination and economic prosperity.