The 'Human Capital Formation' includes investment in: MCQ with Answer and Explanation

Explanation:
Externalities cause a divergence between private and social costs (or benefits), leading to over- or under-production relative to the socially optimal level.

Explanation:
Original sin is the inability of emerging economies to borrow abroad in their own domestic currency.

Explanation:
The Laffer Curve shows that beyond a certain point, increasing tax rates may lead to a decrease in total tax revenue due to reduced economic activity and tax evasion.