The return to schooling for society is higher than the return to schooling for the individual if
A)the concept of diminishing returns applies to education.
B)the concept of constant returns to scale applies to education.
C)human capital conveys positive externalities.
D)investment in human capital involves no opportunity costs.

Question

Quizplus · Accepted Answer

When human capital is seen as conveying positive externalities, it means that the benefits of education go beyond the individual who has undergone the training, and spill over to society at large. As a result, the return to schooling for society would be higher than the return to schooling for the individual. This happens because educated individuals can help increase productivity, innovation, reduce crime rates, and generate better health outcomes.

The Return to Schooling for Society Is Higher Than the Return