I need solution for this issue with all the details,if you can not solve this question, who should and I will send solve this question and help me with all the details? BR/Ha

Q. Suppose you are choosing a career path with two options. Either
you study before entering the labor market, or you enter the labor market directly. You only live in two periods. If you study, you incur tuition fees of $10,000 in the first period, but earn $100,000 in the second. If you enter thelabor market directly, you earn $10,000$ in the first period and $70,000 in the second.

a) Let the interest rate between these periods be given by r. State
the condition under which you will study.

b) Derive the r-value that makes you monetarily indifferent
between studying and entering the labor market directly.

c) Using this model, give examples of policies that the
government can use to boost higher education.

d) Suppose you use data to regress earnings on years in school.
Explain why it is difficult to interpret the coefficient onschooling causally?

Answer rating: 100% (QA)

a Condition for choosing to study You will choose to study if the present value of the benefits from ... View the full answer