Explain one way in which hiring an additional worker could lead to an increase in human capital.
A. Hiring an additional worker alone will lead to an increase in human capital.
B. 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.
C. Hiring an additional worker could lead to an increase in human capital if the worker were able to produce more output per number of labor hours worked than other workers.
D. Hiring 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 other workers.
D. Hiring 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 other workers.
The concept of human capital refers to the productive capacities of individuals as a result of skills, talents, and knowledge. When a new worker joins an organization with unique skills and experience, they can share this expertise with existing staff, thereby elevating the collective ability and knowledge base of the workforce. This diffusion of skills and knowledge within the organization enhances the human capital of the entire workforce.