Final answer:
The value of educational institutions is not solely measured by their contribution to economic growth. Education impacts society in several dimensions including social, political, and cultural. Additionally, the link between economic growth and democratic institutions is not categorically established.
Step-by-step explanation:
The statement "The value of educational institutions can be measured by their contribution to economic growth" is false. The value of educational institutions encompasses more than just their economic contributions. While a highly educated and skilled workforce does contribute to economic growth, education has multifaceted impacts including social, political, and cultural development. In the context of modernization theory, the link between economic growth and democratic institutions is not unequivocally established as causal. Furthermore, education spending varies by level of government and should not be solely assessed on its economic growth effects but also on the broader societal benefits.