Explain one way in which hiring an additional worker could lead to an increase in a firm's human capital.
A) Hiring an additional worker alone will lead to an increase in the firm's human capital.
B) Hiring an additional worker could lead to an increase in the firm's human capital if the workers were able to produce more output per number of labor hours worked than the other workers.
C) hiring an additional worker could lead to an increase in human capital if the firm were able to make a profit from the productivity of the new worker.
D) an additional worker could lead to an increase in human capital if the worker were to bring new skills and experience that can be taught to the firm's other workers.
B) Hiring an additional worker could lead to an increase in the firm's human capital if the workers were able to produce more output per number of labor hours worked than the other workers.
D) an additional worker could lead to an increase in human capital if the worker were to bring new skills and experience that can be taught to the firm's other workers.
The correct answer is B) Hiring an additional worker could lead to an increase in the firm's human capital if the workers were able to produce more output per number of labor hours worked than the other workers.
Explanation:
Hiring an additional worker alone does not necessarily lead to an increase in a firm's human capital. Human capital refers to the skills, knowledge, and abilities of the workforce that contribute to their productivity and the overall success of the firm.
However, if the additional worker is able to produce more output per number of labor hours worked compared to the existing workers, then the firm's human capital would increase. This is because the productivity of the workforce as a whole would improve, leading to increased efficiency and potentially higher profits for the firm.
It's important to note that human capital can also be enhanced through other means such as training programs, education, and acquiring new skills. So, the answer choice D) is also a possibility if the additional worker brings new skills and experience that can be transferred to the other workers, further increasing the overall human capital of the firm.