Final answer:
To draw the budget constraint, education should be on the x-axis while other goods should be on the y-axis. Comparing the budget constraint of a poor community to a richer community involves analyzing the slopes of the two constraints. Using indifference curves can explain why a poorer community is likely to spend less on education compared to a richer community.
Step-by-step explanation:
To draw the budget constraint, you would put "education" on the x-axis and "other goods" on the y-axis. The budget constraint shows the different combinations of education and other goods that a community can afford. It is a straight line that represents all the possible combinations of education and other goods that can be purchased given the community's budget.
To contrast the budget constraint of a poor community with that of a richer community, you would compare the slopes of the two budget constraints. A poor community's budget constraint would have a steep slope, indicating that they have to give up a lot of other goods to spend more on education. On the other hand, a richer community's budget constraint would have a shallower slope, suggesting that they can allocate more of their budget to education while still having enough for other goods.
Indifference curves can be used to explain why a poorer community is likely to spend less on education than a richer community. Indifference curves represent the different combinations of goods that provide the same level of satisfaction or utility. A poorer community's indifference curves would be flatter compared to a richer community's indifference curves. This indicates that the poorer community is willing to give up less of other goods to obtain more education, while the richer community is more willing to sacrifice other goods to increase their education spending.