26)The supply of investable funds slopes upward because

of increasing returns of more education.

of discrimination in the labor market.

of diminishing returns of more education.

students will use the lowest-cost funds first.

27)Which of these would decrease investment in human capital?

an improvement in students' learning capacities

a decrease in federal subsidies for student loans

an increase in the wealth held by the average family

a decrease in discrimination

29)According to human capital theory, younger workers have a

lower opportunity cost of going to college, so they will probably be less likely to attend college.

higher opportunity cost of going to college because the present value of current earnings is high.

higher opportunity cost of going to college because their earning power is so low.

lower opportunity cost of going to college, so they will be more likely to attend college.

31)The price of land is determined equally by shifts in demand and supply.

True

False

32)The marginal product of capital curve has a negative slope.

False

True