b. The concept of human capital investment explains wage differentials because investment in human capital O determines wages. O is measured at a point in time. O enables a worker to build specialized skills that have additional wage value in the labor market. O is a tax-deductible increase in the real value of the wage. c. The long-run rise in real-wage rates in the United States O is indirectly related to investments in human capital and improved labor force skills. O is directly related to investments in human capital and improved labor force skills. O is directly related to higher price levels and improved labor force skills. O cannot be explained by any specific set of factors.

b. The concept of human capital investment explains wage differentials because investment in human capital O determines wages. O is measured at a point in time. O enables a worker to build specialized skills that have additional wage value in the labor market. O is a tax-deductible increase in the real value of the wage. c. The long-run rise in real-wage rates in the United States O is indirectly related to investments in human capital and improved labor force skills. O is directly related to investments in human capital and improved labor force skills. O is directly related to higher price levels and improved labor force skills. O cannot be explained by any specific set of factors.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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