If empirical tests of the human capital theory find conclusive evidence that education enhances productivity, then optimal public policy would suggest that:

Question

Quizplus · Accepted Answer

While empirical evidence suggests that education enhances productivity, optimal public policy would need to weigh the benefits of increased productivity against the opportunity cost of education. This means that policy decisions should consider the costs of education, including the financial burden of education on individuals and the government, as well as the lost wages or potential income during the time spent pursuing education. Additionally, policy decisions should also consider the potential unintended consequences, such as increased inequality if access to education is not equally available to all members of society. Therefore, the answer is C.

If Empirical Tests of the Human Capital Theory Find Conclusive