Everything else equal,as increase in investment in physical and human capital will mean lower living standards in the present,because the opportunity cost of investment is foregone consumer goods.

Question

Quizplus · Accepted Answer

When resources are diverted towards investing in physical and human capital, the production of consumer goods decreases because of the opportunity cost of investing in these activities. This means fewer goods and services are available for consumption in the present, leading to lower living standards. Therefore, the statement is true.

Everything Else Equal,as Increase in Investment in Physical and Human