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Chelsea Waris
on Nov 16, 2024

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John has financial assets totaling $1.5 million, and he plans to use these assets to start his own business. Since John owns these funds and will not need to borrow to start his business, these assets are considered human capital.

Human Capital

Human capital refers to the set of skills, knowledge, abilities, and attributes embodied in individuals that can be utilized to create economic value.

Financial Assets

Financial assets are intangible assets representing ownership of value, such as stocks, bonds, or bank deposits.

  • Identify the significance of human capital in influencing productivity and salary levels.
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