Question : The "knowledge spillover" effect refers to:
Option 1: The transfer of knowledge from one firm to another in the same industry
Option 2: The dissemination of knowledge to the general public
Option 3: The impact of education on individual earnings
Option 4: The interaction between human capital and physical capital
Correct Answer: The transfer of knowledge from one firm to another in the same industry
Solution : The correct answer is (a) The transfer of knowledge from one firm to another in the same industry
The "knowledge spillover" effect refers to the unintentional transmission or diffusion of knowledge and ideas from one entity to another, resulting in benefits or advantages beyond the original recipient. In the context of economics, it often refers to the transfer of knowledge between firms operating in the same industry or related industries.
When one firm develops new technologies, processes, or innovations, there is a possibility that this knowledge will spill over to other firms, leading to productivity gains, improved processes, or the development of new products and services within the industry. These spillover effects can enhance the overall competitiveness and efficiency of the industry as a whole.
Question : The "cost of human capital" includes:
Option 1: The salary paid to employees
Option 2: The financial investment in education and training
Option 3: The cost of healthcare services
Option 4: The market value of human resources in a company
Option 1: The financial investment in education and training
Option 2: The salary paid to employees
Question : What is the role of education in human capital formation?
Option 1: It increases income inequality.
Option 2: It reduces the productivity of the workforce.
Option 3: It enhances the knowledge and skills of individuals.
Option 4: It hinders economic growth.
Question : Does human capital view health and education as ways to increase?
Option 1: Productivity
Option 2: Efficiency of labor
Option 3: Both of the above
Option 4: None of the above
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile