Consider the human capital growth model with the representative consumer. The efficiency parameter of human capital accumulation technology is b. The total productivity factor is given by z = 1. Denote by Ht the human capital accumulated in period t, and by u the time spent working in period t. Assume the initial human capital is H0 = 1.

1. Compute the consumer consumption Ct for periods 0 and 1 as a function of u (increasing or decreasing). Assume there are only two periods and the consumer is willing to maximize his utility function, F(u) = C0 + ln(C1)/(1 + r) , where r = 0.1 is the real interest rate.