The critical human capital investments that are essential to economic development are not made in the LDCs to the extent that economists believe they should be because the payoffs, although large, are only realized in the long run.

Question

Quizplus · Accepted Answer

LDCs (Less Developed Countries) often face constraints in making significant investments in human capital (such as education and health) due to immediate economic pressures and limited resources. The benefits of these investments, while substantial, typically manifest over the long term, making them less prioritized compared to short-term needs.

The Critical Human Capital Investments That Are Essential to Economic