With additional education, the marginal product of human capital
A) increases at an increasing rate.
B) increases at a decreasing rate.
C) is relatively constant.
D) decreases and then increases.

Question

Quizplus · Accepted Answer

The marginal product of human capital increases at a decreasing rate with additional education. This means that for each additional unit of education, the increase in productivity or earnings is less than the increase for the previous unit of education. This is because as more education is obtained, the marginal benefit of each additional unit of education becomes smaller, while the marginal cost remains the same or may even increase.

With Additional Education, the Marginal Product of Human Capital