Which of the following is an example of human capital?

• A. Company-owned delivery trucks
• B. Raw materials used in production
• C. A factory building
• D. A worker's education and skills

Answer: (D)

Verified step by step guidance

1. Understand the concept of human capital: Human capital refers to the economic value of a worker's experience and skills, including education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.
2. Identify the options given and classify them: Company-owned delivery trucks, raw materials, and factory buildings are all physical capital or tangible assets used in production.
3. Recognize that human capital is intangible and relates to the attributes of workers that enhance their productivity.
4. Note that a worker's education and skills represent an investment in human capital because they improve the worker's ability to perform tasks effectively.
5. Conclude that among the options, the example of human capital is the worker's education and skills, as it directly relates to the productive capabilities of individuals.