Question

1What is one policy that can increase the demand of schooling for children in low and middle-income countries?

Group of answer choices

Increasing the quality of teachers in schools

Cash transfers conditional on attendance to school

Bulding more schools

None of the options are correct

All of the options are correct

2Analyzing CCTs with a two-goods model we can predict that the provision of a cash transfers conditional on attendance changes the behavior of all families with incomes under the established threshold for eligibility.

Group of answer choices

3

Evaluate the following three statements:

1. An idiosyncratic shock is a shock that is felt by only one person or household; it is insurable by both formal and informal insurance.
2. An aggregate shock is a shock that is felt by the entire community; it is insurable by both formal and informal insurance.
3. Without aggregate shocks, informal insurance can deliver full insurance.

Group of answer choices

i. and ii. are true

ii. and iii. are true

i. and iii. are true

All three are true

All three are false

True

False

Answer 1

1. What is one policy that can increase the demand of schooling for children in low and middle-income countries?
Answer - (b)Cash transfers conditional on attendance to school
Reason - In order to increase the demand of schooling for children in low and middle income countries, incentives such as cash could be given in exchange of students attending classes regularly. Since, in such countries the opportunity cost of going to school is high as the children could be working somewhere else in order to support their family. Also, the cost of schooling is high than the benefits incurred.