Physical and human capital investments are
a. different in that the opportunity for economic profit is present for physical capital but not human capital decisions.
b. different in that human capital decisions do not involve future income considerations while physical capital investments do.
c. similar in that non-pecuniary considerations do not influence the choices of utility-maximizing decision makers in either case.
d. similar in that both involve forgoing current income (and consumption) with the objective of increasing one's future income (and consumption).
D
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If the MPC is 2/3, then 2/3 of the effect of an increase in government purchases on aggregate demand will come from increased consumption
a. True b. False Indicate whether the statement is true or false
When a binding price floor is imposed on a market to benefit sellers, a. no sellers actually benefit
b. some sellers benefit, but no sellers are harmed. c. some sellers benefit, and some sellers are harmed. d. all sellers benefit.