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DQ. 1. In what way is a college a form of capital? DQ. 2. Explain how...

DQ. 1. In what way is a college a form of capital?

DQ. 2. Explain how higher saving leads to a higher standard of living. What might deter a policy maker from trying to raise the rate of taxes?

3. Describe two ways the U.S. government tries to encourage advances in technological knowledge.

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Answer #1

1) A college or more specifically a college degree is a form of human capital. It gives a person more knowledge and demonstrates his productivity levels. A person invests his time and efforts in obtaining a college degree because of the potential payoff it provides. A college degree is a form of capital because it will help to get you a higher-paying job and will give you useful tools(in the form of knowledge) to solve problems in the future.

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