Existence of ability bias causes estimated rates of return

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1. The existence of ability bias causes estimated rates of return to education to _______ the actual rate of return for a typical individual.

A. overstate

B. understate

C. correctly state

D. None of the above is correct.

2. The existence of nonpecuniary benefits associated with education causes estimated rates of return to education to _______ the actual rate of return for a typical individual.

A. overstate

B. understate

C. correctly state

D. None of the above is correct.

Reference no: EM13831854

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