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When the Private Rate of Return on Education Is Much

Question 2

Multiple Choice

When the private rate of return on education is much higher than the social rate of return:


A) it is not economically efficient to expand education to the point of fully satisfying private demand.
B) school tuition charges need to be raised.
C) funds should be reallocated from other types of investment to more investment in education.
D) the market wage exceeds the shadow price of labor.

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