Studies of the rate of return on human capital must be interpreted with care because:

Question

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All of the choices are valid reasons why studies of the rate of return on human capital must be interpreted with care. A) The private return, which only reflects the individual's earnings, may differ from the social return, which includes benefits to society as a whole. B) Past differences in earnings may not necessarily predict future earnings, as external factors such as changes in the job market or industry may affect earning potential. C) While a high overall average rate of return indicates a positive trend, it does not guarantee that every individual will experience the same level of return on their human capital investment.

Studies of the Rate of Return on Human Capital Must