The folloing five statements relate to the market for human capital. Determine i

Question

The folloing five statements relate to the market for human capital. Determine if each statement is TRUE or FALSE by placing it in the correct bin. TRUE FALSE The demand for human capital investment slopes upwards. The higher an individual's learning capacity the greater are the expected benefits of human capital investment. Students pay for education by using low-cost The supply of funds for human capital funds (like borrowing from family) before usigestment exhibits a positive slope. high-cost funds (like borrowing from a bank). Individuals from wealthy families tend to have a higher cost pool of funds available compared to less wealthy families

Explanation / Answer

Ans:

1. The demand for human capital investment slopes downward : False

2.The higher an individual's learning capacity the greater are expected benefits : True

3.students pay for education by using low cost funds before using high cost funds : True

4. Individuals from wealthy families tend to have a higher cost of pool of funds available compared to less wealthy families: True

5. The supply of funds for human capital investments exhibits a positive slope.: True

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