Why is the internal rate of return from human capital investment subject to diminishing returns? Explain the

Question:

Why is the internal rate of return 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 distribution of income? Do you think that the educational system in the United States contributes to more or less equality in the distribution of earnings? Explain. If you wanted to reduce inequality in the distribution of earnings, what policy recommendations would you make?

Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment... Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...

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