Question

We discussed how the opportunity cost of sending children to school affects the level of school enrollment across countries. The United Nations Human Development Report 2013 reports the following data for per capita income in 2012 (expressed in 2011 U.S. dollars using purchasing power parity) Per Capita Income in 2012 (2011 PPP $) Canada Denmark Greece Lesotho Ethiopia $40,588 41,524 25,391 2,368 1,218 a. Which country would you expect to have the highest school enrollment rate? The lowest rate? Highest: (Click to select) + Lowest: (Click to select) b. Identify each of the following as a benefit or a cost of sending your child to school? Old age support for parents: (Click to select) *. Forgone wages: (Click to select) Improved job opportunities for child: (Click to select) + Tuition, books, and fees: (Click to select) Job or professional prestige: (Click to select) +

Answer 1

A.Highest -Denmark

Lowest-Ethiopia

High per capita income allows parents to spend significant amount of their income on education.Thus, enrollment rate is high for high per capita income countries.

B.Benefits-Old age support for parents

Improved job opportunities for child

Job or professional prestige

Cost-Forgone wages

Tution,books and fees.