8. Unlike physical capital investments, human capital investments a are uncertain and involve a degree of risk b. depend on a sufficient stream of future earnings to be worth while c. are appraised through discounting future earnings and costs d. depend much more, for their eventual success or failure, on the qualities of the individual undertaking them. 9. If the present value of the expected stream of returns from your human capital investment is $100,000 and the present value of the costs of the investment total $80,000, a. you should not undertake the investment b. you will be just as well off whether you make the investment or not c. you should continue to invest in human capital because the net present value is positive d. you have over-invested in human capital because the net present value is positive. 10. A firm that invests in human capital . a. is legally entitled to the ownership of that capital b. will quickly lay off workers in a recession because of the high wages paid to those with human capital. c. may expect that its physical capital will be more productive as a result. d. will be much more likely to concentrate on providing general skills as opposed to specific training. 11. There is between years of education and income. a. a positive relationship b. a negative relationship c. no statistical relationship d. both (a) and (b), depending on the year of the data. 12. Human capital investment a. occurs only in a classroom setting b. results in higher productivity and lower wages. c. is more likely to be undertaken by white-collar workers than by blue-collar workers d. is the total investment made in education, training, and skill acquisition