Why does the NPV of a college education tend to be positive but relatively small
ID: 1158269 • Letter: W
Question
Why does the NPV of a college education tend to be positive but relatively small? O A. O B. Most of these studies are based on nominal interest rates, so the NPV is smaller O c. College students tend to be young and poor, so their opportunity cost of capital is O D. College graduates typically have limited on-the-job skills, so their initial returns There are few barriers to entry for a college education. than we would achieve under real interest rates. high. from the education investment tend to be small.Explanation / Answer
Most of these studies are based on Nominal interest rates, so the NOV is smaller than we would achieve under real interest rate
Answer-B