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

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19 Mar 2016

Document Summary

Technical elites and literate workers are both human capital. Technical elites can identify and act on technological gaps. They(engineers, chemists, mechanists ) identify others" using technology and entrepreneur adopt technology. As for literate workers, since the complexity of work increases, rate of technological changes increase and scientific rigor increases, the demand of literacy and numeracy increases. Literacy also leads to the decrease in transaction cost, because more human capital, more info gained from search and negotiation, the better. Literacy also leads to increases in a,both accelerates into speed and facilitate market integration. The input in human capital is measured by literacy which is equivalent to capability to read, write( sign names) and count. There are several sources of signing: marriage registeration, law suits and license application. However, signing is a low bar for literacy. Signing is not sufficient for writing, even not sufficient for reading and counting. Though input is measured, but it is not equicalent to the actual attendance.