Chapter 6-6 Human Capital

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Chapter six is about human capital and its connection to productivity. Human capital is the sum total of skills embodied within an individual. Human capital is important to an economy because it creates higher-skilled jobs that in return produce new technology, more money, and also more human capital. An important job for the government and the citizens is to invested in the human capital of individuals. For example, going to college yields a ten percent return on investment. Human capital is also an economical passport. Some people can only immigrate to other countries if they have skills that are considered useful. Having more valuable human capital also provides the worker with a more stable job, meanwhile someone with low human capital

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