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Lesson 3: Human Capital — Practice Questions

  1. 1. According to the text, which of these jobs requires many years of school and special training?

    • A. A store clerk
    • B. A bus driver
    • C. A doctor
    • D. A movie ticket seller
  2. 2. In a community, what is another word for a person's job?

    • A. A hobby
    • B. An occupation
    • C. A vacation
    • D. A game
  3. 3. Why are all jobs, like being a bus driver or a teacher, important for a community?

    • A. Because they are all very easy to learn.
    • B. Because some people need to be in charge of others.
    • C. Because workers provide the goods and services that everyone needs.
    • D. Because everyone must do the same kind of work.
  4. 4. Which of these jobs is most likely learned through on-the-job training rather than many years of college?

    • A. A teacher
    • B. A bus driver
    • C. A scientist
    • D. A lawyer
  5. 5. What is the main reason communities need people to have many different occupations?

    • A. So that everyone can have a different favorite color.
    • B. To make sure all the buildings in a town are used.
    • C. To fill a wide variety of needs for goods and services.
    • D. So that some people can have harder jobs than others.
  6. 6. What is the primary way a person makes an investment in their own human capital?

    • A. By purchasing expensive goods
    • B. By spending time learning new skills
    • C. By working more hours at a job
    • D. By investing money in the stock market
  7. 7. Which of the following is NOT considered a part of a person's human capital?

    • A. The ability to read
    • B. Knowledge of history
    • C. A factory building
    • D. Good health
  8. 8. What is typically the first formal institution where people begin to build their human capital?

    • A. A university
    • B. A public library
    • C. A workplace
    • D. School
  9. 9. If a chef attends a culinary class to learn a new cooking technique, what is she doing?

    • A. Decreasing her financial capital
    • B. Investing in her human capital
    • C. Building her social network only
    • D. Purchasing physical capital
  10. 10. Which of the following is the best definition of 'human capital'?

    • A. The amount of money a person has saved in the bank.
    • B. The network of friends and family a person has.
    • C. The collection of a person's skills, education, and health.
    • D. The physical tools and buildings used for a job.