Question 2 of 5 IncorrectIncorrect Incorrect 3 Map Sapling Learning macmilan lea
ID: 1128548 • Letter: Q
Question
Question 2 of 5 IncorrectIncorrect Incorrect 3 Map Sapling Learning macmilan learning The following five statements relate to the market for human capital. Determine if each statement is TRUE or FALSE by placing it in the correct bin. TRUE FALSE The demand for human capital investment slopes upwards Students pay for education by using low-cost funds (like borrowing from family) before using high-cost funds (like borrowing from a bank) Individuals from wealthy families tend to have a higher cost pool of funds available compared to less wealthy families The higher an individual's learning capacity, the greater are the expected benefits of human capital investment The supply of funds for human capital investment exhibits a positive slope. O Previous Give Up & View Salution GO Check Answer O Next Exit- Hint
Explanation / Answer
True
False
The demand for human capital investment slopes upwards, it slopes downwards because of law of diminishing returns
Students pay for education by using low-cost funds (like borrowing from family) before using high-cost funds (like borrowing from a bank). Because students would look for low cost source of funds
Individuals from wealthy families tend to have a higher cost pool of funds available compared to less wealthy families. Because wealthy families would borrow more capital in size compared to less wealthy family. The risk associated with wealthy family is less compared to low wealthy people hence the cost would be more for low wealthy people.
The higher an individual’s learning capacity, the greater are the expected benefits of human capital investment.
The supply of funds for human capital investment exhibits a positive slope.
True
False
The demand for human capital investment slopes upwards, it slopes downwards because of law of diminishing returns
Students pay for education by using low-cost funds (like borrowing from family) before using high-cost funds (like borrowing from a bank). Because students would look for low cost source of funds
Individuals from wealthy families tend to have a higher cost pool of funds available compared to less wealthy families. Because wealthy families would borrow more capital in size compared to less wealthy family. The risk associated with wealthy family is less compared to low wealthy people hence the cost would be more for low wealthy people.
The higher an individual’s learning capacity, the greater are the expected benefits of human capital investment.
The supply of funds for human capital investment exhibits a positive slope.
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