Which of the Following Is False

question 61

Multiple Choice

Which of the following is false?

• A)​Accepting a reduction in current income to acquire education and training can increase future earning ability, which can raise the standard of living.
• B)​Improvements in literacy stimulate economic growth by reducing barriers to the flow of information and raising labor productivity.
• C)​One problem of providing enough education in poorer countries is that since children in developing countries are an important part of the labor force at a young age, there is a higher opportunity cost of education in terms of foregone contribution to family income.
• D)​Investment alone guarantees economic growth per capita.

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Definitions:

Market Price

The prevailing rate at which a good or service is available for purchase or sale in the public market.

Inelastic

A characteristic of demand or supply that signifies a limited response to changes in prices or other economic factors.

Unit Elastic

A situation where a percentage change in the price of a good results in an equal percentage change in the quantity demanded.

Inelastic

Describes a situation where the demand or supply for a good or service is not significantly altered when the price changes.