Tshwane University of Technology

ECON ALE30BT

Chapter 8

Human Capital: Education and Health in Economic Development

1)In less than 5 five sentences, Describe and comment on each the economic relationship of greatest concern for development between education and

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

3.  What factors cause private and social rates of return for primary and secondary education to diverge in developing countries?
4. Why have poor nations invested so much money in education and health? Evaluate the soundness of these reasons.
5.  Why is eradicating child labor seen as an economic investment?

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

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

9.  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.

10.  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..
11. 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?
12.  Is child labor a problem in developing countries? Explain.