Imagine the Turkish government gives away scholarships to students looking to pursue engineering degrees. Which of the following terms BEST describes the type of investment that has occurred?

A human capital
B specialization
C entrepreneurship
D capital goods

A.

Explanation:

Human capital can be defined as economic value of skills or labor of a worker. It is an intangible assets that a company or country invest in. This includes education, health, skills, etc. This assets helps to increase productive ability of an employee or worker. Education is a human capital that many country invests in. As higher the educational rate will produce higher rates of economic growth.

In the given case, Turkish government's decision to give away scholarships to engineering students is a human capital investment. Turkish government is investing in education which in turn will increase economic growth.

Therefore, option A is correct.

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