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Category > Economics Posted 27 May 2017 My Price 4.00

Assume that spending more on the education of a student increases her productivity

Assume that spending more on the education of a student increases her productivity. Draw the relationship between productivity/wages (assuming that wages increase in tandem with productivity and that there are diminishing returns). Assume that more able students have, for each level of education, a higher level of productivity.

 

a Assume that one wanted to maximize total output for a given level of expenditure. How would you allocate educational expenditures? Would you necessarily spend more on the more able students?

b Assume that you wanted to reduce inequalities in income. How would this affect patterns of educational expenditure?

 

 
 

 

Answers

Alpha Geek
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Status NEW Posted 27 May 2017 05:05 PM My Price 4.00

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file 1495907541-Answer.docx preview (164 words )
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