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Suppose that a single mother has preferences over leisure Zrest and the human capital [academic achievement] of her child Zac. She can work in the
Suppose that a single mother has preferences over leisure Zrest and the human capital
[academic achievement] of her child Zac. She can work in the labour market at the rate of w and
she receives a child-support payment of C.
Suppose that the human capital of her child is produced with commodities for children
[books, toys, tutors, medicine, etc.] Xmkt and the time that the mother spends with the child
ch. In particular, the mother needs d units of time and b unit of commodities to produce a unite
of child's human capital Lace Suppose that the price of commodities for children is p. Resting
requires only leisure time.
1. Suppose that the mother wants the child to be assessed ready for kindergarten, which
requires the level of human capital Zac 100. How many units of time and commodities
does she need to invest? How many units of time does she need to work to buy these
commodities?
2. What is her budget constraint in terms of leisure Zrest and the human capital of her child
Zac? What is the full price of one unit of a child's human capital?
i need it urgently asap both parts
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