Using standard methods to measure benefits and costs,the private rate of return on education cannot be less than the social rate of return because:
A) benefits of education accrue to the individual, not to society.
B) individuals otherwise would choose not to go to school.
C) social costs include public-sector outlays as well as private costs of schooling.
D) all of the above.

Question

Quizplus · Accepted Answer

The social rate of return includes both private costs and public-sector outlays, which are not considered in the private rate of return, making the private rate of return potentially higher.

Using Standard Methods to Measure Benefits and Costs,the Private Rate