Economics of Education (ECST3203)
DIPET 1 in Economics - ECNT
Semester: Resit
Level: 300
Year: 2016
THE UNIVERSITY O F
BAMENDA
HIGIIER TECIINICAL TEACHER TRAINING COLLEGE
DEPARTMENT OF ECONOMICS
Resit Examinations 2015/2016 Academic Year
ECONOMICS OF EDUCATION Level II: Time: 1r 30mins
NOTE: Attempt ail questions. Begin a new question on a new page.
I, (40 marks)
The educational cost function of an educational System was estimated as:
C = 25 + 0.25TS + 0.1FM - 0.25E + 0.00005E
(3.85) (2.40) (-3.68) (4.84)
R
2
= 0.85 N =100
Where C = Average expenditure
TS = Teacher salary
FM = No of female teachers
E= Enrolment
(i) How can you determine from the equation that the function is U-shaped? (One sentence).
(ii) What is the optimal enrolment of the school System?
(iii)If the school System had a total enrolment of 300,000 students, is it over or under populated?
(iv) If government had adopted an expansionist policy, what would you advice?
(v) Each student in the school pays a fee of 100,000 frs each. If that were the only source of income of
the school, what will be the total income raised by the school?
(vi) If the recurrent expenditure of the school were estimated at 20 Billion frs, what is the capital
expenditure, assuming that the school keeps a reserve of 5 Billion frs.?
IL (30 Marks)
(i) Distinguish between education and industrial production functions.
(ii) What difficulties would you encounter in estimating an education production function?
(iii)In what way would teacher salary and teacher qualification affect school outcome?
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