Correct Answer: The increase in wages associated with higher education levels

Solution : The correct answer is (b) The increase in wages associated with higher education levels.

It measures the financial benefit or return that individuals can expect to gain from investing in education. Higher levels of education typically lead to higher-paying jobs and better career prospects, resulting in an increased earning potential. Therefore, the rate of return on education is a measure of the economic advantages that individuals can obtain through acquiring more education and skills.