Investments in Human Capital Quick Check

5 of 55 of 5 Items
Question
Which of the following statements about investment in human capital is correct?(1 point)
Responses

There could be disadvantages to investing in human capital through education.
There could be disadvantages to investing in human capital through education.

Training could reduce workplace safety.
Training could reduce workplace safety.

Investing in health care could reduce labor productivity.
Investing in health care could reduce labor productivity.

There can only be benefits to acquiring a post-secondary education.

1 answer

The correct statement regarding investment in human capital is:

There could be disadvantages to investing in human capital through education.

While investing in human capital, such as through education or training, generally has many benefits, there can also be downsides, such as significant costs, opportunity costs, and the possibility that the education may not yield the expected returns.

The other statements are incorrect or misleading:

  • Training could reduce workplace safety: While training can potentially have negative effects if not done properly, it is generally intended to improve safety.

  • Investing in health care could reduce labor productivity: Typically, investing in health care is expected to improve productivity, not reduce it.

  • There can only be benefits to acquiring a post-secondary education: This is an overgeneralization; while post-secondary education often provides benefits, it may not always lead to job opportunities or may lead to debt burdens that outweigh the benefits.

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