10 Questions
What is the main objective of individuals investing in education?
To increase their future income
How does health expenditure contribute to human capital formation?
By increasing the supply of healthy labor force
In what way is spending on education by individuals similar to spending on capital goods by companies?
Both aim to increase future profits or income
Why is health considered an important input for both individual and national development?
It directly impacts the productivity of the labor force
What is the significance of firms investing in on-the-job-training for their workers?
To enhance the skills and knowledge of their employees
What is the main reason firms insist that workers should work for a specific period of time after their on-the-job training?
To recover the costs of the on-the-job training
Why do technically qualified persons like engineers and doctors migrate to other countries?
To seek higher salaries offered in other countries
Why is expenditure on migration considered a source of human capital formation?
Because the enhanced earnings in the new place outweigh the migration costs
Why do people spend to acquire information relating to the labour market and other markets?
To make decisions regarding investments in human capital and its efficient utilization
Why is expenditure incurred for acquiring information also considered a source of human capital formation?
Because it helps individuals make informed decisions about their human capital investments
Test your knowledge about human capital formation and investment in education with this quiz. Explore the reasons why individuals invest in education and how it contributes to human capital. Understand the similarities between individual investment in education and corporate investment in capital goods.
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