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Human Capital Formation · Question 25 of 51

Question 25

HardOriginal question

Read the two statements and choose the correct option.

I. Physical capital depreciates with use and over time.

II. Human capital can never depreciate.

Options for question 25

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. Machines wear out: I is true.

  2. Skills fade with age and change in technology, so II is false.

Concept
Depreciation
Typical time
100 s
Your time
—
The rule this testsHuman and physical capital
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Ten questions from Human Capital Formation, at your own pace.

Practise this chapter →

Ten questions from Human Capital Formation, at your own pace.

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