Assertion (A): Spending on education is treated as an investment, not just consumption.
Reason (R): Education raises a person's future earnings and output.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Like investment in a machine, spending now brings a stream of returns later.
R explains A.

Concept: Education as investment
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsHuman capital

Practise this chapter →

Ten questions from Human Capital Formation, at your own pace.

Practise this chapter →

Ten questions from Human Capital Formation, at your own pace.

Practise this chapter All 51 questions in Human Capital Formation Revise the notes for Human Capital Formation

Assertion (A): Spending on education is treated as an investment, not just consumption.Reason (R): Education raises a person's future earnings and output.

Explanation

Assertion (A): Spending on education is treated as an investment, not just consumption.
Reason (R): Education raises a person's future earnings and output.