Lesson 7: Human Capital: Health and lnvestment in Economic

Development
Pre-Test (Date Completed: November 23, 2019)
Instruction: True or False. Read each item. Write True if the statement is true and False if
otherwise. Write your answer on the space provided for.
True 1. Human capital may be defined as the human capacities
that raise productivity.
False 2. In the Philippines, there is no evidence yet to state that
investment to human capital is an instrument to economic
development.
True 3. The fifth United Nation’s Sustainable Development Goal is
the educational goal.
True 4. Increase in the number of years of schooling increases
income.
True 5. Increase in income is always a direct incremental increase
in the allocated budget for proper nutrition and health care.
True 6. Spillover benefits to investment in one’s health and
education include gender equality, increased income and
improved health.
True 7. Enhancing the curriculum requires the participation of
stakeholders to include the students themselves.
False 8. Payment to borrowings of the Philippine government is not
included in the budget priorities.
True 9. The OCED stands for Organization for Economic
Cooperation and Development.
True 10. Direct costs of secondary education can be outweighed
by the benefits of increased income in the future.
Learning Activity: Essay (Date Completed: December 8, 2021)
A. What is human capital and why is it crucial to expand human capital as part of the
development process? How can an increase in human capital lead to an increase in
GDP? Why might it not lead to an increase in GDP?
Human capital refers to a country's expertise, skill, knowledge, and education at any
given period. Many countries that have invested in human capital have seen their
economies grow at a faster rate..
The nation benefits from increased innovation in manufacturing and allied industries
as a result of increasing and developing high-quality human capital, which leads to
higher growth. Furthermore, investment in human capital will result in increased
physical capital production. Labor productivity will rise as skilled employees use
machines and other forms of physical capital more efficiently. In addition, for a
developing country, increased human capital boosts output levels and leads to
economic growth through increasing GDP.
Increased human capital contributes to higher productivity, which in turn leads to
higher income, which leads to higher GDP. Human capital has an impact on
economic growth and can aid in the development of an economy by increasing
people's knowledge and skills.
If institutions are weak, an increase in human capital may not result in a rise in GDP,
therefore the gain in human capital is concentrated among the economy's top
earners. If the increase in human capital is focused in agriculture, it is unlikely that it
would result in increased GDP, hence growth will be low.
B. Why should expansion of the university system be made in developing countries
Universities, as data repositories and training grounds for intellect, wisdom, and
service diplomats, have a fundamental role to play in preparing graduates to
improve society. Universities are critical for shaping, training, advising, and leading
the youth toward development goals.
In the knowledge-based economy of the twenty-first century, universities are
considered as a source of economic development and one of the most essential
production inputs. We live in the Information and Knowledge Age, which is fuelled
by scientific study, creativity, and invention, as is widely known.
As a result, development is dependent on educated individuals, particularly
graduates of science degree programs. As a result, improving the country's
educational quality would be incredibly efficient and effective in managing risks,
resulting in the economic success that we aspire.
C. No question.
D. 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.
Accordingly health economists argue that better educated people are more likely to
 choose healthier lifestyles. This is in part because future returns for healthy
behaviour are higher for the better educated, thus leading them to invest more in a
healthy lifestyle. Being healthy isn't just about our physical health but also emotional,
social, spiritual and especially being mentally healthy.
Likewise, people of higher educational background are on average less likely to
smoke, abuse alcohol, and will exercise more, eat healthier foods, and have more
frequent health checks than the average population.
In addition to that, people with healthier lifestyles tend to strive harder to graduate
and become successful in the future. Students with healthier lifestyles may be more
efficient in acquiring knowledge so they tend to perform well in their education.
They have the energy to finish tasks and perseverance to continue their studies.

Health experts say that if you go to school more, you're likely to make better
choices for your health. This is because educated people see more benefits in being
healthy, so they invest more in staying well. Being healthy means not just being
physically fit but also feeling good emotionally, having friends, finding purpose, and
especially keeping your mind healthy.

People who've spent more time in school are usually less likely to smoke, drink too
much, and more likely to exercise, eat healthy, and go for regular health check-ups.
Also, those with healthier habits tend to work harder in school and aim to be
successful in the future. If you take care of your health, it can help you do well in
your studies – you'll have the energy to finish your tasks and the determination to
keep learning.

A better-educated population often makes healthier lifestyle choices due to

increased awareness of health-related information. Education promotes
understanding of nutrition, exercise, and preventive measures, contributing to
overall well-being. Conversely, a healthier population can focus more on learning
and skill development, as good health enhances cognitive functions and attendance
in educational activities. The interplay between education and health forms a
positive feedback loop, fostering individual and societal well-being.
E. What are the critical health challenges facing developing countries today and what
measures are being taken to confront these challenges? Explain your answer.
Since we continue to struggle with access to safe and clean water, proper hygiene
and waste management, as well as traffic jams. According to the WHO,
contaminated water is responsible for over 1.7 million deaths per year. The same
could be said about other issues.
However, if we look at the larger picture, we can see that climate change, along with
pollution, has been our greatest concern since then. Our ozone layer has been
 harmed, and it will continue to deteriorate in the future. When this happens,
humanity will most likely fade away, and the world as we know it will come to an end.
Therefore, I believe that the only thing that will save our planet is to increase our
agriculture and lessen our attitude of being too cruel to our planet. With this, we can
at least contribute something that will treat the damage or slowdown its effect. To
start the discipline with our sel thay small discipline has the biggest impact if done
by everyone.
Assessment: (Date Completed: November 29, 2021)
Instruction: Refer to the figure then answer the questions that follow.
1. What are the two types of graduates presented in the figure? Explain by identifying the
areas in the graph.
The two types of graduates are Secondary and Primary graduates. Those primary
graduates began to work at 13. While the secondary gradutes started working at around 17.

2. What are the benefits of each type of graduate presented in the figure? Explain by
identifying the areas in the graph.
The figure above shows that secondary gradutes have earned more than primary gradutes.
They were able to work in jobs that require skills and knowledge which they have learned
from their studies. And those jobs pay them for their great performance at work. On the
contrary, primary graduates was able to work longer than the secondary gradutes, which
enables them to experience actual learning and developed more skills but the thing is they
wasn't paid as much as the secondary gradutes.

3. What are the costs of each type of graduate presented in the figure? Explain by identifying
the areas in the graph.
Despite the fact that they were able to incur direct charges for their studies such as school
fees, bus fares, and an apartment, their profits from their employment may very well be
sufficient to cover the expenses. Primary graduates, on the other hand, experienced lower
indirect costs than secondary graduates.