Using Standard Methods to Measure Benefits and Costs,the Private Rate

question 18

Multiple Choice

Using standard methods to measure benefits and costs,the private rate of return on education cannot be less than the social rate of return because:

• A) benefits of education accrue to the individual, not to society.
• B) individuals otherwise would choose not to go to school.
• C) social costs include public-sector outlays as well as private costs of schooling.
• D) all of the above.

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Definitions:

Legislation

Laws or legal statutes that are established by a governing body to regulate, authorize, prohibit, or provide framework for certain actions and practices.

Immigration

The process of individuals moving into a foreign country to live, often for reasons like employment, family reunification, or refuge from conflict.

Macro Political Risk

Exposure to potential financial losses in international investment due to political instability or change in a country's policies.

Valuation Risk

The risk of loss that arises from the difference between the value that is assigned to an asset and the real value it achieves in the market.