Which of the Following Is Generally an Opportunity Cost of Investment

question 15

Multiple Choice

Which of the following is generally an opportunity cost of investment in human capital?

• A)future job security
• B)forgone wages at present
• C)increased earning potential
• D)the costs of living during the years of school

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Definitions:

Substitution Effect

The change in consumption patterns due to a shift in the relative prices of goods, leading consumers to substitute one good for another.

Input Price

The cost of resources (labor, materials, etc.) used in the production of goods or services.

Complementary

Goods or services that are often used together, such that the increase in consumption of one leads to an increase in the consumption of the other.

Demand for Labor

The total amount of workers that employers are willing and able to hire at a given wage rate within a certain period.