Typically when firms talk about depreciation they are usually referring to the deprecation of physical capital assets. However, how any why might it be possible for there to be deprecation in human capital?
What will be an ideal response?
Just like physical capital human capital can also become obsolete. If a worker studies and trains to improve his human capital then he or she is adding to his or her own human capital stock. Likewise, if workers do not keep up with changes in the labor market by acquiring new skills and knowledge then it is very possible than the human capital that ehy have acquired can decline in value over time.
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When people "vote with their feet" they _____
a. move to the governmental jurisdiction with the lowest taxes b. move to the governmental jurisdiction that have the bundle of government goods and services closest to their preferred level c. move to the governmental jurisdiction with the best schools d. move to democracies from dictatorships
What does the production possibility curve imply about the resource allocation?
a. Only some points on the curve are efficient. b. All points on the curve are equally efficient. c. A point which lies below the curve is more efficient. d. A point which lies above the curve is readily achievable.