Reference no: EM133428443

1. Education

a) Usingthemodel of the demand for schooling we discussed in class, explain what happens to the present value of benefits if the discount rate increases and how it affects the schooling decision (i.e remain or drop out school).

b) Why low-income households might have a higher discount rate than high-incomehouseholds?

c) Using the same model and concepts we discussed in class, describe how the construction of a factory demandingworkers with less than a high school degree only would change the optimal schooling choice in the area. (Hint: think about the hidden costs of education)

2. Gender

a) Briefly explain why does the theory we discussed in class predicts a U-shaped relationship between female labor forceparticipation and economic development? What does the evidence show?What are the factors explaining the rise in female labor force participation?

b) How do we measure whether there are "missing girls" in a country? How does development may contribute to the missing girl problem?

c) What is the rationale behind the gender biases observed in countries like China, India, and Azerbaijan? (Hint: think about the economic benefits)

d) Using the information on average earnings calculate the pay gender gap for each of the countries listed below. Interpret the gender pay gap of the United States and Brazil.Does having a lower gender pay gap does it always mean earning equality? Why or why not?

3.

a) How can agricultural technologies be generated to respond to farmers' need? In other words, in which cases technology can substitute for land or labor? (Hint: think about relative prices and scarcity)

b) Explain in words why the risk of land appropriation affects the amount of inputs a farmer may use on their field? Which type of investment do you expect would be more affected by land insecurity: fertilizer usage or irrigation investments? Why?

c) Explain why farmers might choose to pay for fertilizer now to be delivered later rather than opting to pay only once it arrived. Is this choice rational? Why or why not? (Hint: think about farmers' type of preferences and whether this maximizes their welfare/profit)