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If the government increases spending on education what is the likely long-term effect on welfare?

Answer and explanation

Correct answer: Human capital and productivity may rise

Education expenditure can improve people’s knowledge, skills, health awareness, and ability to obtain productive employment. In economic terms, it builds human capital, which can raise labour productivity, future income, and the quality of life over time. The result is not automatic in every case because the quality and access of education matter, but option B gives the most likely long-term effect. The other options are either opposite or unjustifiably certain.

Related tags

EducationHuman CapitalGovernment ExpenditureWelfareGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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