Robert Lucas, a Nobel laureate in economics, argues that there are ________ returns to human capital.
A)increasing
B)decreasing
C)constant
D)negative
E)zero

Question

Quizplus · Accepted Answer

Robert Lucas argues that there are increasing returns to human capital, which means that the value of an additional unit of human capital (such as education or skills) is greater for someone with more human capital. In other words, the more educated or skilled a person is, the more valuable additional education or skills will be to them. This can lead to significant income and wealth inequality, as those with more human capital can earn substantially higher wages and accumulate more wealth than those with less human capital.

Robert Lucas, a Nobel Laureate in Economics, Argues That There