In the African nation of Senegal, to enroll in school a child needs a Birth Certificate that costs $25 . This price is several weeks' income for many families. Explain how this requirement is likely to affect the growth of human capital in Senegal
What will be an ideal response?
Human capital growth depends, in part, on the extent of school-ing: More schooling means more human capital. Because of Senegal's hefty fee for a required Birth Certificate, fewer children will enroll in school, thereby decreasing Senegal's human capital growth.
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A country will realize no gains from trade if
A) pre-trade and free-trade relative prices are identical. B) all countries employ the same technology. C) it does not have an absolute advantage in at least one good. D) its wage exceeds the world average. E) pre-trade and free-trade relative prices are not identical.
A movement along the demand curve for automobiles is caused by a change in:
a. the price of automobiles. b. the price of gasoline. c. the price of steel. d. consumers' incomes.