Which of the following is generally an opportunity cost of investment in human capital?
A)future job security
B)forgone wages at present
C)increased earning potential
D)the costs of living during the years of school

Question

Quizplus · Accepted Answer

Opportunity cost refers to the benefits foregone by choosing one option over the other. When an individual invests in human capital, they may forego wages at present to acquire more education or training. Therefore, the opportunity cost of investing in human capital is the forgone wages at present. The other options (A, C, D) are potential benefits of investing in human capital, and not opportunity costs.

Which of the Following Is Generally an Opportunity Cost of Investment