3
QuizMultiple Choice

Global Economic Policy — Unit test

Question 3 • * HSA 26-27 US Government

Read the following excerpt from a report about some of the possible reasons college costs are increasing.A major concern related to higher education’s business model is that colleges and universities cannot or will not control their cost increases. In for-profit industries when productivity goes up, salaries usually go up. This is different in public education.Based on the excerpt, how is higher education different from for-profit industries?

Answer
A
Salaries in higher education are higher because of business costs.
B
Salaries in higher education are based on productivity.
C
Salaries in higher education are lower because of business costs.
D
Salaries in higher education are based on additional factors.

Explanation

The excerpt contrasts for-profit industries, where salaries usually rise when productivity increases, with public education, where that relationship is different. This suggests higher education salaries are not based on productivity alone and depend on additional factors. Choice D, “Salaries in higher education are based on additional factors,” best matches the excerpt.

AI-written and checked against the verified answer.

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