3. Consider two workers with identical preferences, Paapa and Ben. Both workers have the same life cycle wage path in that they face the same wage at every age, and they know what their future wages will be. Leisure and consumption are both normal goods. In your own words, Page 1 of 2 a. Compare the life cycle path of hours of work between the two workers if Ben receives a one- time, unexpected inheritance at the age of 35. (2 Marks) b. Compare the life cycle path of hours of work between the two workers if Ben had always known he would receive (and, in fact, does receive) a one-time inheritance at the age of 35. (3 Marks) 4. Assume that you are 18 years old and deciding whether to go to university or start working. If you work, you will earn a constant wage Wis throughout your career. If you study, you pay tuition for four years and then earn a constant wage WUNI. a. Show the condition under which you will choose to study. (1 Marks) b. Explain how changes in tuition, interest rate, and wage differential (WUNI - WHS) would affect your decision. (6 Marks) 5. Rhoda's preferences for consumption and leisure can be expressed as U(C, L) = (C - 100) x (L - 40). There are 110 (non-sleeping) hours in the week available to split between work and leisure. Rhoda earns 10 GHS per hour after taxes. She also receives 320 GHS worth of support from her parents each week regardless of how much she works. a. What will be Rhoda's marginal utility of leisure and her marginal utility of consumption? (2 Marks) b. What is Rhoda's marginal rate of substitution when Z = 100 and she is on her budget line? (3 Marks) c. Find Rhoda's optimal amount of consumption