Which of the following is a prediction of human capital theory?Question 11Answera.The value of an individual's skills and abilities is a function of the time and expense required to acquire them.b.Higher wages improve efficiency by attracting workers who will perform better.c.Jobs with negative characteristics require higher pay to attract workers.d.Pay policies signal the kinds of behaviour an employer seeks from employees.e.Job seekers will not accept jobs when pay is below a certain wage.

Human capital theory suggests that those who have invested in higher levels of education will be able to command higher wages. A labour economist collected data on annual wages (Y, in $'000) and years of study (X) from a random sample of 12 employees to test this proposition. Assuming a linear relationship between Y and X, the labour economist used a least-squares method and found that the Y intercept = -23.50 and the slope = 9.73. Also, the sum of squares total (SST) and the sum of squares regression (SSR) were equal to 11132.92 and 8726.91, respectively. What is the lower bound of a 95% prediction interval of annual wages (in $'000) for an employee with 10 years of study. Assumer the h Statistic is 0.10. a. greater than $20 but less than $36 b. less than $20 c. greater than $20 but less than $30 d. greater than $36

State the difference between human resource and human capital formation

The general human capital model predicts that schooling increasesGroup of answer choicesas both ability and the discount rate decrease.as both ability and the discount rates increase.as ability decreases but as the discount rate increases.as ability increases but as the discount rate decreases.when ability is held constant and the discount rate increases.

Human capital increases with on-the-job training.Group of answer choicesTrueFalse

An increase in human capital will decrease output.Group of answer choicesTrueFalse