Question

Which statement describes investing in human capital to increase productivity? Monica, the CEO of Happy Ride, a cab service in Mexico, has retired from her position. Her successor, Janice, decides to give the company a makeover. To increase productivity, Janice introduces several changes. She notices that there's a higher demand for cabs on weekend nights, so she extends service hours from 12 hours to 24 hours on weekends. To strengthen brand recognition, she has all the cabs painted in the company colors. She even requires the drivers to wear a uniform with the company logo. Then she has a mobile app developed to turn Happy Ride into an app-based service. Recognizing the need to improve the customer experience, she introduces customer service and English language training for drivers.

Answer 1

Answer: Human capital is an intangible assets or quality.employers improve the quality of that capital by investing in employees e.g education, experience, e.t.c.

Explanation: Monica invested in the human capital of her employees by introducing English language training to her employees, giving her driver's branded shirt with company logo. What she has done directly improves the productivity of her employees which yields higher economic value (profits) for her company and the economy as a whole.