A Theory States That Increasing a Person's Formal Education Results

question 23

Multiple Choice

A theory states that increasing a person's formal education results in increased earnings over a lifetime. In this theory, "higher education" is the:

• A) independent variable.
• B) dependent variable.
• C) correlation.
• D) effect.

---

Definitions:

ROCE

Return on Capital Employed; an economic metric that evaluates how effectively a firm uses its capital to generate profits.

Variable Costs

Expenses that shift in direct proportion to the amount of production or sales, like labor and materials.

Fixed Costs

Costs that remain consistent for a company irrespective of how much goods or services it produces.

Financial Leverage

Financial leverage is the use of borrowed funds to increase the potential return of an investment.