Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Derivatives And Internal Models

Authors: Hans Peter Deutsch, Mark W. Beinker

5th Edition

3030229017, 9783030229016

More Books

Students also viewed these Finance questions

Question

Describe the concept of diversity and diversity management.

Answered: 1 week ago

Question

How does the EEOC define sexual harassment?

Answered: 1 week ago