1)What is the relationship between poverty and child labor? How does child labor contribute to

the poverty traps you studied in the first part of the course?

2) "Chocolate and children are closely related: while children in developed countries savor

sweet snacks, others in developing countries use machetes to clear cocoa farms, harvest beans,

and apply unhealthy pesticides. Child labor in cocoa farms is pervasive in Cote d'Ivoire, one

of the most prosperous West African countries. ........

Cocoa prices are at an all-time low; raising them could provide much--needed help to children,

their households, and the Ivorian society.

a) Do you agree with the author of these sentences? Will raising cocoa prices unambiguously

lead to a decrease in child labor?

b) Two articles studied the effect of changes in agricultural prices on child labor in Vietnam and

Brazil. What do they find?

3) Is the socially efficient level of child labor always zero? Explain.

4) Consider parents' choice of the level of child labor for their children. Will they choose the

optimal level of child labor from the society's point of view when education has positive

externalities? Why? Explain.

5) Consider parents' choice of the level of child labor for their children. Will they choose the

optimal level of child labor when they are credit constrained? Why? Explain.

6) What is the agency problem in child labor? Explain.

7) Should governments ban child labor? Explain using the arguments presented in the chapter.

8) Should trade sanctions used to enforce an international standard against the use of child

labor? Explain using the arguments presented in the chapter.

According to the author, what is the most promising tool for reducing child labor? Explain.