d) [4 points] On this same set of axes, draw two representative indifference curves for both individual A and individual B, showing one indifference curve for each lying tangent to their respective time constraint. Recall that A’s wage is twice B’s wage: wA=2wu**. Are individual A’s total earning less than, equal to, or more than twice as much as individual B’s total earnings? Recall that total earnings are the wage times work hours.
e) [2 points] Explain briefly why your answer to Exercise 13(a) may change if you found out that individual A had to spend ten times as many hours on homework during her schooling years as individual B did. (Assume that time spent on homework only achieves education and does nothing else.)
f) [2 points] Explain why it is optimal for individual B to investless in health when she is already less healthy than A . Why does she not invest more to
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