2020 Economy - Education, Human Capital, and Taxation

23. With reference to the above passage, the following assumptions have been made : 1. Lower tax rates in a country invariably translate into greater investments in higher education. 2. Investment in the education of children ensures their economic freedom. 3. Economic freedom has a positive impact on building up human capital. Which of the above assumptions is/are valid?

• 1 only
• 2 only
• 3 only
• 1, 2 and 3