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- Subject
- Human Capitaleconomics-mcqs › human-capital
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
What are the likely effects on capital usage and input demand if workers experience an increase in their real wages?
Multiple choice question for Human Capital. Select an option, then review the explanation below.
Explanation
When real wages rise, labor becomes more expensive, prompting firms to cut back on capital usage and reduce overall input demand to control costs.
More Human Capital MCQs
Practice related questions from the same subject.
- 1.From the perspective of the human capital theory, what is the role of education?
- 2.What does the signaling theory of education primarily suggest?
- 3.When two positions demand equal skills and experience, which job is generally the one offering higher pay?
- 4.Which statement accurately describes the relationship between attractiveness and earnings among workers?
- 5.Which profession has the highest potential to earn income comparable to a superstar?