Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 15 - Wage Determination - Discussion Questions - Page 350: 8

Answer

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Work Step by Step

It makes a lot of sense to invest in human capital, for more educated workers are able to do more things for a company and are also often more efficient. At the same time, this would only make sense for certain sectors. For instance, if I needed someone to flip hamburgers, it would not be worth paying someone with a PhD to do it as the job would likely not justify a high salary.
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