Education Is Often Cited as Something That Benefits More Than

question 44

Multiple Choice

Education is often cited as something that benefits more than just the person getting the education; it benefits society in a number of other ways. This is called ______.

• A) redistributive policy
• B) positive externality
• C) buoyancy of community funding
• D) market-based incentives

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Definitions:

Required Return

The expectancy of financial gain on an investment, considering its risk profile, set by investors as a benchmark.

Dividend Irrelevance Theory

A theory suggesting that dividend policy has no effect on a company's value or its stock price.

Firm's Value

The total monetary value of a company, typically assessed through metrics like market capitalization, enterprise value, or net asset value.

Cost of Capital

The rate of return that a company must earn on its project investments to maintain its market value and attract funds.