(a) Why is education and training rarely provided by firms? What governmentpolicies would encourage this provision?(b) Use a model of endogenous growth to explain how encouraging more privateinvestment in education would lead to increased growth rates. Assuming thatprivate agents place less value on future consumption than currentconsumption, would ever higher growth rates be desirable?(c) Outline the setup of (but do not attempt to solve) an endogenous growthmodel that incorporates both leisure and consumption in the utility function.

Educated employees earn more and have more opportunities than the person without a degree or…

Answered: (a) Why is education and training…

Business

Accounting

(a) Why is education and training rarely provided by firms? What government policies would encourage this provision?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Regulation of Commercial Banks

The main function of any commercial bank is accepting deposits and lending money to borrowers. Apart from these two activities, commercial banks provide a host of other services to their customers, like discounting bills of exchange, acting as a custodian of a customer's will, and so on. In the absence of a proper regulatory framework or proper regulations in place, the commercial banks would have ended up charging exorbitant or varied rates of interest or service charges on the funds loaned by them or the services performed by them.

Question

(a) Why is education and training rarely provided by firms? What government
policies would encourage this provision?
(b) Use a model of endogenous growth to explain how encouraging more private
investment in education would lead to increased growth rates. Assuming that
private agents place less value on future consumption than current
consumption, would ever higher growth rates be desirable?
(c) Outline the setup of (but do not attempt to solve) an endogenous growth
model that incorporates both leisure and consumption in the utility function.

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