Why Would the Return on Investment in Elementary Education in a Developing

question 58

Multiple Choice

Why would the return on investment in elementary education in a developing country yield a higher rate of return than the same dollar size investment in elementary education in a high-income country?

• A) The greater need for education in the developing country will induce it to make more efficient use of the funds.
• B) High-income countries often are more corrupt, so part of the funds are spent to pay bribes there.
• C) There is a greater need for higher education in the high-income country, so elementary education investments are not preferable.
• D) Diminishing returns to investment in elementary education are likely to be more pronounced in the high-income country.

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