a. DEFINE signals and indices that are used in employment decisions and give examples of each. Consider Betty, who works in a nearby hospital as a nurse. Betty is trying to decide whether or not to attend the local college and get an MBA degree to become a hospital administrator. This would take 3 years and cost $20,000 per year. Currently, Betty is earning $45,000 per year; the average salary for hospital administrators is $80,000 per year. Betty is 60 years old and plans to retire at age 65, no matter what decision she makes about the MBA.

b. DRAW an age earning profile for each of these two options.

c. If the market interest rate is 10%, what advice would you give Betty? Is the MBA degree worth it? CAREFULLY CALCULATE the net present value of BOTH of these choices. What is the value of the nursing degree? What is the value of staying at her current job for five more years? EXPLAIN your decision.

d. What are the most important policies and programs that government and employers offer to increase the propensity of women like Betty to acquire education and training? EXPLAIN each of these programs and what impact they have made on the ability of women to pursue various careers.