Reference no: EM133304744

Question 1. Suppose a model of inter-generational mobility. (a) When parental wealth increases, what happens to the potential consumption of children? (b) When child ability increases, what happens to the potential consumption of children? For each case, explain your answer.

Question 2. Differentiate between intra-generational mobility and inter-generational mobility. Provide examples.

Question 3. What might social mobility entail if relative poverty were eliminated without addressing inequality in the top and bottom quintiles of the redistribution?

Question 4. How do economic structures and inequality contribute to poverty? In your answer, provide specific examples.

Question 5. In providing for children, parents may consider how to best allocate resources. Suppose rhis the rate of return on the next increment of human capital and r is the rate of return on saving. How does the relationship between rh and r influence the decision of parents to either invest in their children's education or provide monetary transfers to their children? Explain using an example.