Consider a couples decision about how many children to have


Consider a couple's decision about how many children to have. Assume that over a lifetime a couple has 200,000 hours of time to either work or raise children. The wage is $10 per hour. Raising a child takes 20,000 hours of time.
a) Draw the budget constraint showing the trade-off between lifetime consumption and number of children. (ignoring the fact that children only come in whole numbers.) Show indifference curves and an optimum choice.

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Econometrics: Consider a couples decision about how many children to have
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