Question
Use human capital theory to predict which individual in each part will obtain more years of schooling. Justify your answer with a diagram showing the
Use human capital theory to predict which individual in each part will obtain more years of schooling. Justify your answer with a diagram showing the marginal benefit and marginal cost of schooling for each individual. If any curves differ between the two individuals, explain why. Except for the differences indicated explicitly in each part, assume that the individuals are otherwise alike.1 (a) Micah can invest money with her mothers investment firm and earn a return of 10 percent. Jun can only invest in mutual funds and earn a return of 5 percent. (5 marks) (b) Tyrone is an exceptional high school student and is eligible for a generous scholarship at the local university. Jalen is an average high school student, and although he would be admitted to the local university if he applied, he is not eligible for any scholarships. (5 marks) (c) Mukesh is a skilled hockey player and can become a highly-paid professional player when he finishes high school. Vern never learned to skate and can continue working as a cashier at the local coffee shop when he finishes high school. (5 marks)
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