At the optimal amount of education,the internal rate of return on education is:

Question

Quizplus · Accepted Answer

At the optimal amount of education, the internal rate of return on education is equal to the market rate of interest. This means that the cost of investing in education, including the time and money spent on education, is equal to the benefits of higher income and career opportunities that education provides. Any more or any less education would result in a lower internal rate of return as the costs would exceed the benefits or the benefits would be less than the costs, respectively. Therefore, the optimal amount of education is the point where the internal rate of return on education is equal to the market rate of interest.

At the Optimal Amount of Education,the Internal Rate of Return