Question

question 1 of 1
a positive return on investment for education happens when ________.
select a response.
○ your earnings are higher than the cost of your education
○ you calculate earnings after working for one year after college
○ you attend a public university and do not take out loans
○ you use federal student loans to attend a private college

Explanation:

To determine a positive return on investment (ROI) for education, we analyze the concept of ROI: it occurs when the benefits (earnings from education - related career) exceed the costs (cost of education, including tuition, fees, etc.).

• The first option states "your earnings are higher than the cost of your education" – this aligns with ROI logic (earnings > education cost means positive net gain).
• The second option (calculating earnings after one year) is not a measure of ROI (ROI considers the entire investment - return cycle, not just one year).
• The third option (attending public university without loans) relates to cost reduction but not ROI (ROI is about earnings vs. cost, not just loan - free education).
• The fourth option (using federal loans for private college) relates to financing, not ROI (ROI depends on earnings vs. total cost, not loan type or college type).

Answer:

A. your earnings are higher than the cost of your education