Econ Ch6

Which of the following are benefits to a community from a public investment in education?

All of these.

Individual and public investments in human nutrition are investments in human capital which result in economic development.

True

As a student, what can you do now that will enhance your value to future employers?

All of these.

Economics teaches us that LeBron James should be taxed at a higher rate.

False

Economics teaches us that LeBron James should not be taxed at a higher rate.

False

What is Human Capital?

A list of attributes embodied in a person which may have value in the marketplace.

Why should businesses invest in human capital of employees, when these investments may make the employee more valuable to other companies?

All of these.

Governmental provision of public health infrastructure in a community . . .

Is a smart investment in the productivity of schools, businesses, and community organizations.

Why do public colleges and universities charge registration fees?

Because both the public and the student share in the gains from an educated populace.

The Georgia Miracle used all the state's lottery earnings to support development of education from K-12 through higher education. What happened?

Industrial firms flocked to Georgia in the next decade because of the highly educated workforce available in Georgia.

Which of the following is not likely an example of your own personal investment in human capital?

Buying classical music CDs to become cultured.

A college degree guarantees a higher income for life.

False

Willingness to move away from one's hometown represents entering a broader market for one's human capital attributes.

True

International organization investment in education and health for women and girls . . .

Represents investment with proven high rates of return as women's roles expand in poor countries.

From an economic perspective, mega-salaries for CEOs are unfair.

False

The price of a certain skill bears no inherent relation to its social value, only its ___

scarcity

This is the relation belief that there is a fixed amount of work to be done in the economy, and therefore every new job must come at the expense of a job lost somewhere else.

lump of labor

Economists estimate that this is the percentage of the wealth of a modern economy attributable to human capital.

75

This is the effciency with which we convert inputs into outputs, in the economy

productivity

According to surveys and experiments conducted, a majority of Americans would rather earn less income as long as it is more than their neighbor’s income. What kind of income does this represent?

relative