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QuestionBusiness Management

"A positive return on investment for education happens when: A. Your earnings are higher than the cost of your education. B. You calculate earnings after working for one year after college. C. You attend a public university and do not take out loans. D. You use federal student loans to attend a private college."
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Step 1
: Identify the condition for a positive return on investment (ROI) for education.

The correct answer is option A: Your earnings are higher than the cost of your education. This means that after accounting for all the expenses related to your education, such as tuition, fees, and opportunity cost, your earnings from employment should exceed those costs for a positive ROI.

Step 2
: Elaborate on the other options and why they do not represent a positive ROI.

Option B: You calculate earnings after working for one year after college. This option is not necessarily related to a positive ROI. The time frame for calculating earnings does not change the fact that the earnings must exceed the cost of education for a positive ROI. Option C: You attend a public university and do not take out loans. While attending a public university and avoiding loans may reduce the cost of education, it does not guarantee a positive ROI. The key factor is still whether your earnings are higher than the cost of your education. Option D: You use federal student loans to attend a private college. Using federal student loans to attend a private college increases the cost of education, making it even more challenging to achieve a positive ROI. However, this option does not directly address the ROI question, so it cannot be the correct answer.

Final Answer

A positive return on investment for education happens when your earnings are higher than the cost of your education.

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