Why is the from human capital investment subject to diminishing returns? Explain the rationale for identifying the “diminishing rate of returns to education curve” as the “demand for human capital curve.” Combine the demand for human capital curve with a “supply of investment funds curve” to explain why various individuals find it rational to invest in different amounts of human capital. What are the implications of your answer for the personal of income? Do you think that the educational system in the United States contributes to more or less equality in the of earnings? Explain. If you wanted to reduce inequality in the of earnings, what policy recommendations would you make?
