Deck 8: Human Capital: Education and Health in Economic Development  

Question 1

Why should the development of a solid elementary education system take precedence over an expansion of the university system in developing countries?

Answer 1

One reasonable answer would apply the law of diminishing returns. Another would stress that university-trained graduates have limited benefit without complementary inputs of moderately trained personnel. Also, the higher rate of return (both private and social) from investing in primary education.

Question 2

What is human capital and why is it crucial to expand human capital as part of the development process?

Answer 2

Human capital is defined as human capacities that raise productivity. In particular, human capital is focused on the level of education and health within the population. As more human capital is accumulated, labor productivity rises, which is essential for sustained growth in the economy.

Question 3

Developing countries have not benefited as much as expected from their higher education programs because of

A)lack of program focus on the needs of the country.
B)increasing returns to scale in each individual's education.
C)graduates getting jobs in the private sector.
D) all of the above.

Answer 3

A

Question 4

Is child labor a problem in developing countries? Explain.

Question 5

In developing countries higher educational facilities have tended to expand to the point where social benefits exceed private benefits. What is the economic explanation for this?

Question 6

Explain how a better educated population will also tend to be healthier, and vice versa, that a healthier population will tend to be better educated.

Question 7

What factors cause private and social rates of return for primary and secondary education to diverge in developing countries?

Question 8

What are the critical health challenges facing developing countries today and what measure(s) are being taken to confront these challenges? Explain your answer.

Question 9

What is educational inequality and how is it measured? Why is it important to measure the degree of educational inequality in a country? Explain your answer.

Question 10

Write an essay on the economic relationship of greatest concern for development between ?education and
a.the level of growth.
b.the character of growth.
c.inequality.
d. fertility.
e. absolute poverty.f.international migration.

Question 11

Why do you think Uganda has been so successful at decreasing the prevalence of HIV/AIDS?

Question 12

Evaluate critically the following statement: The developed countries have all shown a significant increase in the numbers of university-trained workers as incomes have risen; thus the development of a solid university system should be among the major priorities of developing countries.

Question 13

Explain some of the reasons why developing countries have not realized a greater positive development impact from their higher education programs.

Question 14

Why is eradicating child labor seen as an economic investment?

Question 15

Education of girls is a crucial development investment because

A)it leads to improved child health.
B)it leads to reduced fertility.
C)women do most of the work in agriculture.
D) All of the above.

Question 16

Why have poor nations invested so much money in education and health? Evaluate the soundness of these reasons.

Question 17

Explain why the education of girls is probably the most cost-effective development investment. Be sure to include in your answer some discussion of at least two of the following: absolute poverty; health and development; fertility; and agriculture.

Question 18

How can an increase in human capital lead to an increase in GDP? Why might it not lead to?an increase in GDP?

Question 19

Although Progresa/Oportunidades has been successful in Mexico, why might a similar program not work elsewhere?

Question 20

Investment in human capital is very similar to investing in physical capital. True or false? Explain your answer.

Question 21

An individual's demand for education is most affected by

A)direct and indirect costs of schooling.
B)development priorities of the country.
C)the desire to escape agricultural work.
D) all of the above.

Question 22

The supply of public school places is determined by

A)individuals' demand for education.
B)direct and indirect costs of schooling.
C)political processes, often unrelated to economic criteria.
D) all of the above.

Question 23

The ILO approach to combating child labor stresses

A)encouraging parents to migrate to the cities in search of work.
B)banning child labor.
C)tackling the sources of poverty.
D) all of the above.

Question 24

It is important to stress the role of primary education in the development strategy because of

A)LDC's comparative advantage from basic skills education.
B)the law of diminishing returns.
C)development emphasis on poverty alleviation.
D) all of the above.

Question 25

Human capital is best defined as

A)the amount of wealth people have.
B)the amount of money people have to spend on schooling.
C)human capacities that raise productivity.
D) the average education level of the population.

Question 26

As the number of years of schooling completed increases, the expected private return and private cost of education

A)increase at roughly the same rate.
B)increase at different rates, with expected private return increasing at a slower rate than private cost.
C)increase at different rates, with expected private return increasing at a faster rate than private cost.
D) do not increase.

Question 27

Studies show that improved education of women in developing countries leads to

A)lower infant mortality.
B)better designed, market based development policies.
C)lower international dependence.
D) all of the above.

Question 28

Credential inflation results from

A)a combination of cost-push inflation and demand-pull inflation.
B)rigidities in the industrial sector.
C)the need to select from among qualified applicants in the modern sector.
D) all of the above.

Question 29

According to the Regional HIV and AIDS Statistics data from WHO, which region of the world has the largest number of adults and children living with HIV?

A)South and South-East Asia
B)Sub-Saharan Africa
C)Latin America
D) North America

Question 30

According to the 2005 UNDP Human Development Report child mortality (under age 5) has declined in all regions of the world except

A)South Asia.
B)Sub-Saharan Africa.
C)Middle East and North Africa.
D) None of the above.

Question 31

The World Bank approach to combating child labor stresses

A)making child labor legal under certain conditions.
B)tackling the sources of poverty.
C)encouraging families to migrate to richer countries.
D) providing each child with a handheld electronic toy so that children have an alternative to working.

Question 32

The fact that developed countries have strong, widely attended university systems indicates that

A)university expansion should be a development priority.
B)universities teach skills used on the job.
C)developing countries place too much emphasis on agriculture.
D) None of the above.

Question 33

Child labor is a widespread problem that applies primarily to children

A)between the ages of 5 and 14.
B)between the ages of 10 and 14.
C)between the ages of 12 and 14.
D) between the ages of 12 and 16.

Question 34

Concentration of resources on higher, rather than basic, education in developing countries tends ?to lead to

A)greater inequality.
B)lower fertility
C)less international migration
D) more job creation.