ECO 212-Tutorial 9
prepared by:
Dr. Xin Jin
Section 1 - MCQs
• MCQ1 – Health is
a) An important objective of development
b) An important instrument for development
c) Both an objective and an instrument for
development
d) None of the above
Section 1 - MCQs
• MCQ1 – Health is
a) An important objective of development
b) An important instrument for development
d) None of the above
Section 1 - MCQs
• MCQ2 – Health and education
a) Are separate entities in the human capital approach
b) Are complements in the human capital approach
c) Are substitutes in the human capital approach
d) None of the above
Section 1 - MCQs
• MCQ2 – Health and education
a) Are separate entities in the human capital approach
c) Are substitutes in the human capital approach
d) None of the above
Section 1 - MCQs
• MCQ3 – Taking care of one’s health and education
a) Is an investment on one’s human capital
b) Increases one’s future productivity in the job
c) Increases one’s future financial return in the job
d) All of the above
Section 1 - MCQs
• MCQ3 – Taking care of one’s health and education
a) Is an investment on one’s human capital
b) Increases one’s future productivity in the job
c) Increases one’s future financial return in the job
Section 1 - MCQs
• MCQ4 – Beyond education, what is the second
important pillar of the human capital approach to
development?
a) Social capital
b) Physical capital
c) Health capital
d) Financial capital
Section 1 - MCQs
• MCQ4 – Beyond education, what is the second
important pillar of the human capital approach to
development?
a) Social capital
b) Physical capital
d) Financial capital
Section 1 - MCQs
• MCQ5 – What is an important indicator of being
unhealthy for children?
a) Being unable to learn and attend schooling
b) Being underweight
c) Being anemic
d) All of the above
Section 1 - MCQs
• MCQ5 – What is an important indicator of being
unhealthy for children?
a) Being unable to learn and attend schooling
b) Being underweight
c) Being anemic
Section 1 - MCQs
• MCQ6 – 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
Section 1 - MCQs
• MCQ6 – 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.
Section 1 - MCQs
• MCQ7 - 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.
Section 1 - MCQs
• MCQ7 - An individual’s demand for education is most
affected by
b) development priorities of the country.
c) the desire to escape agricultural work.
d) all of the above.
Section 1 - MCQs
• MCQ8 – 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.
Section 1 - MCQs
• MCQ8 – Concentration of resources on higher rather
than basic education in developing countries tends
to lead to
b) lower fertility.
c) less international migration.
d) more job creation.
Section 1 - MCQs
• MCQ9 – 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.
Section 1 - MCQs
• MCQ9 – The supply of public school places is
determined by
a) individuals’ demand for education.
b) direct and indirect costs of schooling.
d) all of the above.
Section 1 - MCQs
• MCQ10 – 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 stress on
agriculture.
d) none of the above.
Section 1 - MCQs
• MCQ10 – 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 stress on
agriculture.
Section 2 – cause or effect?
• One of the basic issues of development is to
distinguish between cause and effect.
• For example, income and higher education
attainment are mutually reinforcing in the developed
countries.
• But as we argued, higher education is not the cause
of development.
• Instead, the demand for higher education follows
from development.
• Similar for population growth, urbanization.
Section 2 – cause or effect?
Section 2 – cause or effect?
• Duflo, Banerjee, and Kremer revolutionized the
study of Development Economics
• Randomized Controlled Trials (RCTs) enable
researchers to disentangle the real causal
relationship.
• Watch the video of Randomized Controlled Trials
explaining RCTs.
Section 2 – cause or effect?
• Are then RCTs the Golden Rule to study and
understand development?
– If so, we can only empirically study relatively small-
scale experiments.
– As grand-theories of development cannot be tested
through RCTs, anything they say in terms of causal
claims is inconsequential as cannot be rigorously be
tested.