The belief that education makes a person more productive and thereby raises his or her wage is referred to as the
A) compensating-differential view of education.
B) natural-ability view of education.
C) unmeasured-variables view of education.
D) human-capital view of education.

Question

Quizplus · Accepted Answer

The belief that education improves a person's productivity and leads to higher wages is known as the human-capital view of education. This view suggests that education is an investment in future earnings, as individuals with higher levels of education can command higher wages due to their increased skills and knowledge. Options A, B, and C do not describe this specific belief.

The Belief That Education Makes a Person More Productive and Thereby