(a) Suppose individuals differ in their ability, but face the same interest rate. Is it possible...

(a) Suppose individuals differ in their ability, but face the same interest rate. Is it possible for the more able individuals to choose less schooling?

(b) Suppose individuals have the same ability, but face different interest rates. Is it possible for the individuals who face a lower interest rate to choose less schooling?

Explain in details

Expert Solution

(a)

people confronting same MMrest rate, i.e., with same budgetary abilitybth.,Ith distinctive knowledge and capacities can pick less schooling. The business class of the general public tune can without much of a stretch give a solid monetary Mckground to the kids Mr advanced education yet mrne can achieve less schooling in a manner Mat they have a set future in family busMess and genetic business. People with a ground-breaking money related foundation can pick less schooling, as some gathering of individuals put stock in taking forward their Mmily busMesses and thrive it.

(b)

When one has a frail family foundation and doesn't has a monetarily amazing family however can do wonders in their lives, yet then to settle on less schooling with the goal that the monetary weight on their families because of their higher edumtion can be lesser. There are numerous such individuals who surrendered their investigations and done lesser schooling, yet are considerably more equipped for getting quality training, yet Me to lesser murces and money related emergency they quit their fantasies.

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Rahul Sunny answered 2 years ago

11、(a) Suppose individuals differ in their ability, but face the same interest rate. Is it possible...

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