Education as Investment
Spending on education by individuals is similar to:
- Spending on luxury goods
- Spending on capital goods by companies to increase future profits — Correct Answer
- Charity and donations
- Government taxation
Explanation:
Correct Answer Explanation
Spending on education is similar to spending on capital goods by companies with the objective of increasing future profits over a period of time.
Key Points:
- Individuals invest in education to increase their future income.
- Education confers higher earning capacity.
- Also provides better social standing, better choices in life, knowledge of societal changes.
📚 About this Topic — CH-4: HUMAN CAPITAL FORMATION IN INDIA
This multiple choice question is from CH-4: HUMAN CAPITAL FORMATION IN INDIA, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-4: HUMAN CAPITAL FORMATION IN INDIA to strengthen your preparation.
