ECON 232 Study Guide - Final Guide: Human Capital, Risk Aversion, Numeracy

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1 Feb 2016
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For example, engineers, chemists, mechanists identify others" using technology and entrepreneurs adopt technology. Therefore, endogenous tech change and human capital have strong correlations. Since there are more human capital, there are more human resources which could be used to do research and negotiations , which will help emploers get more information and decrease the transaction costs. Second, literacy leads to the increase in a. Not only literacy accelerates a into speed, but also it facilitates market integtation. Economists measure human capital input/literacy by measuring human"s capability to sign. They track sources of signing, such as marriage registration(primary), law suits and license application. However, there are two problems with this method. First, signing is not sufficient of writing, let alone reading and counting. Second, this method can"t measure the actual attendance. Therefore, signing is a low bar for writing. First, the samples are biased down in women and are dominated by young men.