When Measuring the Benefits from Investing in Human Capital

question 282

Multiple Choice

When measuring the benefits from investing in human capital

• A) the only benefits come from the increase in salary because of going to school.
• B) in addition to the monetary benefits, the benefit from expanding horizons should be included.
• C) we must include the costs of tuition and books but not the money made from part-time jobs.
• D) we must include the foregone earnings in the benefit calculation.

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Definitions:

Main Effect

The direct impact of an independent variable on a dependent variable, ignoring other potential influencing factors.

Significant

In statistics, it refers to results that are unlikely to have occurred by chance alone, according to a predefined threshold of probability (the significance level).

Marginal Means

The means of subsets of data, taking into account the influence of one or more other variables.

Main Effect

The direct impact of an independent variable on a dependent variable in an experiment or study.