mpage.com/laticínbluivde.htmlhk . 2 d cr MindTap . Cengage leaning dn View Favor
ID: 1169439 • Letter: M
Question
mpage.com/laticínbluivde.htmlhk . 2 d cr MindTap . Cengage leaning dn View Favorites Tools Help MindTop ect-from-Text Homework (A Sb) (12 points) ONE ATTEMPT ONLY Due Today at 21 pw Con Attempts Score:14 4. Problems and Applications Q4 what is the opportunity cost of investing in capital? Higher taxes O Improved technology that leads to faster growth The loss of consumption that results from redirecting resources toward investment which of the following statements are consistent with a country passtly overinvesting capital, Oeck ar marano. As the stock of capital rises, te extra output produced from an aditional at ar apital fails. As the stock af capital rises, te etra output produced from an additional unk of capital rises. People would prefer to have higher consumption spending and less future growth. People wold prefer to have lower consumption spending and higher future growth. What is the opportunity cost of investing in human capital?Explanation / Answer
4.
a.
Correct Answer:
The loss of consumption that results from redirecting resources towards investment.
Explanation:
Resources are not being used for consumption as they are directed in investment activities. It means that benefits derived from consumption become opportunity cost for investment.
b.
As the stock of capital rises, the extra output produced from an additional unit of capital falls.
People would prefer to have lower consumption spending and higher future growth
Explanation:
Overinvestment is shown when decreasing output is achieved with each additional unit of capital. Also, people prefer the future growth rather the benefits of present consumption.
c.
Improved technology that leads to faster growth
Explanation:
If investment is not done in human capital then it can be invested in technology that gives faster growth. This, it becomes opportunity cost.
d.
The best job a Ph.D. in Philosophy can find in managing a restaurant.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.