Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Human Capital Formation in India

Question:

Why do individuals invest in education?

Options:

To increase the profits of their businesses.

To increase their future income.

To reduce future expenses.

All of the above

Correct Answer:

To increase their future income.

Explanation:

Spending on education by individuals is similar to spending on capital goods by companies with the objective of increasing future profits over a period of time. Likewise, individuals invest in education with the objective of increasing their future income.