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:

Insurance Premiums

Payments made to an insurance company in exchange for coverage, which can be due monthly, quarterly, or annually.

Straight-life Policy

A type of life insurance policy where premiums are paid throughout the policyholder's lifetime, with benefits paid out upon death.

Maximum Loan

The largest amount of money that one can borrow from a lender under specified terms.

Insured

An insured individual is someone who is covered under an insurance policy, protecting them against certain risks or losses.