Making the choice to spend money on post-secondary education pays off in the long run because:

• A. It reduces the need for any further skill development.
• B. It increases an individual's potential future earnings.
• C. It eliminates all future financial risks.
• D. It guarantees immediate employment after graduation.

Answer: (B)

Verified step by step guidance

1. Understand the context of the problem: it is about the economic benefits of investing in post-secondary education.
2. Recognize that the question is asking for the primary reason why spending money on education is considered a good investment in microeconomic terms.
3. Recall the concept of human capital, which refers to the skills, knowledge, and experience possessed by an individual that can increase their productivity and earnings potential.
4. Identify that investing in education increases an individual's human capital, which typically leads to higher potential future earnings, rather than eliminating all risks or guaranteeing immediate employment.
5. Conclude that the correct economic rationale is that education increases an individual's potential future earnings, making it a valuable investment despite upfront costs.