If empirical tests of the human-capital theory find conclusive evidence that education enhances productivity,then what would optimal public policy suggest
A)The benefits of increased productivity need to be weighed against the opportunity cost of education.
B)Compulsory schooling laws increase social well-being.
C)Everyone should be required to finish high school.
D)A university education should be required of all members of society.

Question

Quizplus · Accepted Answer

Optimal public policy would consider the trade-offs, weighing the benefits of increased productivity from education against the opportunity costs, such as time and resources spent on education.

If Empirical Tests of the Human-Capital Theory Find Conclusive Evidence