Which of the following are reasons to suspect spending on education might overestimate human capital investment?
A) Much human capital investment comes from on- the- job training.
B) Education spending leaves out foregone wages.
C) Part of total spending on education is really consumption.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

A) Much human capital investment comes from on-the-job training, which cannot be captured by education spending alone.
B) Education spending leaves out foregone wages, which can be a significant cost for those who choose to invest in education.
C) Part of total spending on education is really consumption, such as spending on extracurricular activities or social events, which do not directly contribute to human capital development.

Which of the Following Are Reasons to Suspect Spending on Education