What Is the Net Return to Carolina's Educational Investment

question 9

Multiple Choice

What is the net return to Carolina's educational investment?

• A) 1
• B) 3
• C) 6
• D) 7
• E) 9

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Definitions:

Crowding Out

A situation in which increased public sector borrowing leads to a reduction in private sector spending, either because of higher interest rates or because available financial resources are used by the government.

Governmental Purchases

Expenditures made by the government for goods and services that are used to provide public services.

Domestic Output

The total value of all goods and services produced within a country's borders in a given time period.

Transfer Payments

Payments made by governments to individuals or other entities without requiring a good or service in return, such as welfare or social security payments.