*By drawing the appropriate graph, show how a family might decide to increase schooling as their income rises.

*Consider a country whose workers have with two levels of schooling: 6 years (33% of workers) and 7 years (67% of the workers). How much does schooling contribute to labor income in this country?

* For the sake of this question, say that country A has a saving rate of 40% and country B has one of 10%. Also, country A's workers have 7 years of schooling and B's has 6 years. How do these two country's per capita income compare?