Skills are costly to acquire.What forms do these costs take?
i.out-of-pocket expenditures to pay for more education
ii.a higher value of marginal product
iii.forgone earnings while attending higher education

Question

Quizplus · Accepted Answer

Skills are costly to acquire in terms of both financial and opportunity costs. Out-of-pocket expenditures to pay for education is a direct financial cost. Foregone earnings while attending higher education is an opportunity cost. Higher value of marginal product is not a direct cost, but rather a potential benefit of acquiring skills. Therefore, the correct options are i and iii.

Skills Are Costly to Acquire