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Rittenberg L.T. Human Capital Is Used For Essay

Rittenberg L.T. Human capital is used for acquiring knowledge and skills which increase individuals' value and productivity. Such skills are experience, training, and education. These skills aids in providing resources to enhance economic growth, and produce new businesses and technologies.

Despite affording costs in the United States, college education has raised individual's income. More educated persons have higher IQs and well educated and rich parents. Similarly, above hundred other nations with diverse cultures and economic systems, educated people have the same standards.

From the viewpoint of individuals, the college education increases benefits and income, while from the viewpoint of society; it enhances desirable social norm and values, communication and democracy, and produces effective leaders. Its monetary benefits include lowering of the probability of unemployment. On the other hands, non-monetary benefits include psychological benefits i.e. social acceptance, ability to communicate better, and make wise decisions.

On the labor market experience, obtained education has an important impact. The more one acquires education, the better he understands new information, acquaints with novel technologies, and acquires bright skills. Education affects a person's income and the value of his employment. Jacob Mincer counts three advantages of educated workers over less educated workers in his book "Studies...

greater employment stability, higher wages, and greater upward mobility in income.
Our unlimited wants are repetitively in conflict with limited resources, compelling us to involve in several activities and eliminate several others. Scarcity is the situation of choosing among alternatives. Owing to this scarcity, the economists describe the most important concept of opportunity cost, which is the value of the best alternative forgone in making a choice.

The cost of college education involves the money spent for books, fees, and tuition. But the value of time spent on attending classes and studying instead of other activities is the most significant cost. Students either expect bright future or give high value to learning while giving up that time. Keeping in view, for taking the course, the college tuition fee fully reflects the opportunity cost to me for future value. An important personal opportunity cost of taking this course is time. When time is used for one activity cannot be used for other activities. Time used for studying will not be available for other uses. The allocation of time should be viewed like any other decision. One selects time to meet his needs, achieve goals, and satisfy personal values.

The alternative combinations of goods and services can be graphically represented through production possibilities curve while trade barriers are government-induced restrictions…

Sources used in this document:
Bibliography

Alan Nelson (1984). Some Issues Surrounding the Reduction of Macroeconomics to Microeconomics. Philosophy of Science 51 (4):573-594.

Don Ross (1995). Real Patterns and the Ontological Foundations of Microeconomics. Economics and Philosophy 11 (1):113.

Julianne Nelson (1992). The Market Ethic: Moral Dilemmas and Microeconomics. Journal of Business Ethics 11 (4):317 -- 320.
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