Which of the Following Are Reasons to Suspect Spending on Education

question 38

Multiple Choice

Which of the following are reasons to suspect spending on education might overestimate human capital investment?

• A) Much human capital investment comes from on- the- job training.
• B) Education spending leaves out foregone wages.
• C) Part of total spending on education is really consumption.
• D) All of the above.
• E) None of the above.

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Definitions:

Expense Equation

The sum of the fixed and variable expenses.

Average Cost

A method to determine the cost of goods sold or inventory valuation where all costs of acquisition are averaged over the total units available for sale.

Supply Functions

Mathematical expressions that describe how the quantity of goods or services offered by suppliers changes in response to price changes.

Demand Functions

Mathematical expressions that show the relationship between the quantity demanded of a good or service and its price.