The Return to Schooling for Society Is Higher Than the Return

question 65

Multiple Choice

The return to schooling for society is higher than the return to schooling for the individual if

• A)the concept of diminishing returns applies to education.
• B)the concept of constant returns to scale applies to education.
• C)human capital conveys positive externalities.
• D)investment in human capital involves no opportunity costs.

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Definitions:

Short Run

A period in economics during which at least one input is fixed, limiting the ability of a firm to adjust its production levels.

Monopolistically Competitive

refers to a market structure where many firms sell products that are similar but not identical, allowing for some degree of market power and promotional differentiation.

Fixed Costs

Costs that do not change in total amount with a change in business activity level, such as rent or salaries.

Short Run

The short run in economics is a period during which at least one input, like plant size, is fixed and cannot be changed.