Which of the following is a distinction between general and specific human capital? A. General human capital consists of training and education that is valued by different firms, whereas specific human capital is more valuable to the current employer. B. General human capital enables workers to earn compensating wage differentials, whereas workers with specific human capital earn the competitive wage rate. C. General human capital leads to higher labor costs, whereas specific human capital leads to higher turnover costs. D. General human capital leads to self-selection on the basis of risk preference, whereas specific human capital leads to the adverse selection problem.
The gains from specific training in human capital tend to go to the: A. employing firm and not the individual. B. federal government in the form of higher taxes. C. individual and not the employing firm. D. parents since they paid for the education in the first place.