Tui University Eco201-Microeconomics Module 1 Case Assignment

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  • Topic: Economics, Production-possibility frontier, Opportunity cost
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  • Published : February 27, 2012
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TUI UNIVERSITY
ECO201-Microeconomics
Module 1 Case Assignment
Dr. Currie

“And for man to look upon himself as a capital good, even if it did not impair his freedom, may seem to debase him... by investing in themselves, people can enlarge the range of choice available to them. It is one way free men can enhance their welfare.” (Theodore William Schultz)

Education is the foundation in which people build upon as they grow older in age. From birth to death we are constantly adding to the repertoire of knowledge that one may obtain through the proper channels of learning. As we look at an education we can see that it is an investment, kind of like a bank account. We can put money in the bank and let it sit for long periods of time and draw money out when we need it. The same concept can be applied to the knowledge and skills that we have stockpiled in our brains. This type of investment is known as an investment into human capital. Human capital is the attributes of a person that are productive in some economic context. Often refers to formal educational attainment, with the implication that education is an investment whose returns are in the form of wage, salary, or other compensation. These are normally measured and conceived of as private returns to the individual but can also be social returns. (About.com)

Many people do not view their education as a form of capital and many times sell themselves short of what they could potentially be worth in the long run in receiving a formal education through the proper channels and institutions. Over time and through years of learning and adapting we collect a wealth of knowledge that can be accessed by drawing from our mental memory banks to further pursue the ambitions and goals that we may have for ourselves. With the gaining of human capital we do have to look at the monetary costs that are associated with making who we are a well-rounded more marketable individual in this very competitive world of...
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