CLEP Microeconomics Exam Prep

Answer - B - Human capital is not inversely proportional to education.

Key Takeaway: Human capital, as an investment in people, is important in the economic growth of a country. Among its characteristics is that it is productive, increasing the efficiency of labor and is produced through education and training. When properly supported and invested in, human capital provides a return. Human capital is also subject to depreciation over time such as the loss of skill and outdated knowledge and training.