Why Is Education Deemed to Be a Product, as Well

question 109

Multiple Choice

Why is education deemed to be a product, as well as a source, of wealth in a nation?

• A)because people who are deemed the brightest and the best receive significant scholarship funds
• B)because people who are interested in higher education are from the wealthy elite
• C)because education is increasingly technological and only accessible to people with substantial financial resources
• D)because a significant number of people must have freedom from the pressures of earning a living

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Definitions:

Modigliani

Franco Modigliani, an economist known for his work in corporate finance, especially the Modigliani-Miller theorem regarding capital structure and the dividend irrelevance theory.

Miller

Often refers to a person who operates a mill, a machine to grind a cereal crop to make flour.

Risk

The exposure to potential financial loss or gain, often evaluated in decisions involving investment or finance.

Leverage

The strategy of using borrowed money to increase the potential return of an investment.