Final answer:
Manny is improving his human capital by attending college and majoring in economics. Human capital encompasses the skills, knowledge, and abilities that enhance worker productivity and potential earnings. Education in economics will equip Manny with valuable knowledge and skills for the job market.
Step-by-step explanation:
When Manny is attending college and majoring in economics, he is improving his human capital. Human capital refers to the accumulation of knowledge, skills, and abilities that increase a worker's productivity and thereby their potential to earn higher wages and contribute more effectively to the economy. Investments made in human capital, such as through education or health, are designed to enhance these attributes, enabling individuals to contribute at a higher level of quality to the labor force.According to Caroline Krafft, human capital shapes the ability of workers to convert their time into productive outputs. An investment in human capital, such as acquiring an economics degree, equips a student with a more sophisticated understanding of market forces, financial systems, and economic policy.
The intended outcome is that this education increases the student's future productivity and, as a result, his potential to earn more. The content loaded with economic knowledge and analytical skills is what will help Manny anticipate and solve complex economic issues, thereby increasing his value in the job market. Investing in human capital does require significant upfront costs and effort, but it is expected to pay off in the form of enhanced earnings and productivity, given the element of time and the acquisition of relevant skills through formal education.