What is the opportunity cost of investing in capital

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Reference no: EM132080162

What is the opportunity cost of investing in capital?

a.Higher taxes

b.The loss of consumption that results from redirecting resources toward investment

c.Improved technology that leads to faster growth

Which of the following statements are consistent with a country possibly overinvesting in capital? Check all that apply.

a.People would prefer to have higher consumption spending and less future growth.

b.People would prefer to have lower consumption spending and higher future growth.

c.As the stock of capital rises, the extra output produced from an additional unit of capital rises.

d.As the stock of capital rises, the extra output produced from an additional unit of capital falls.

What is the opportunity cost of investing in human capital?

a.Lower taxes

b.The goods or resources that could be produced if not investing in human capital

c.Improved technology that leads to faster growth

Which of the following statements are consistent with a country possibly overinvesting in human capital? Check all that apply.

a.The best job a Ph.D. in philosophy can find is managing a restaurant.

b.Each person's education level matches his or her profession.

c.People are not educated enough to fill existing job openings.

Reference no: EM132080162

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