B. Let h denote human capital. Parent's can invest resources in the produc- tion of their children's human capital (h) in two periods: early childhood (i) and adolescence (i;). Governments can also invest in the child in each of the two periods (government investments are gy and g;). Government investments are exogenously chosen by the government and takes as given by parents. The production function for h is the following: . ho = A lvo7 +122] " h% where A is innate ability of the child and hp is parental human capital. zy and z1 are a composite of parental and government investments: zy = gq (79, go) and z1 = g1 (11,91). Assume that ] co,1] and 6