Explain one way in which hiring an additional worker could lead to an increase in human capital. (1 point)
Hiring an additional worker could lead to an increase in human capital if the firm were able to make a profit from the productivity of the new worker.
• Hiring an additional worker alone will lead to an increase in human capital.
Hiring an additional worker could lead to an increase in human capital if the worker were to bring new skills and experience that can be taught to other workers.
Hiring an additional worker could lead to an increase in human capital if the worker were able to produce more output per number of labor hours worked than other workers.
1 answer
By hiring an additional worker who has specialized skills or knowledge, the firm can increase its overall human capital by diversifying and expanding the expertise of its workforce. This new worker can bring valuable insights, ideas, and talents that can be shared with other employees, leading to a more skilled and knowledgeable team overall. This increase in human capital can lead to improved efficiency, innovation, and competitiveness for the firm.