ECONOMICS OF EDUCATION, DECEMBER 2023

1. Efficiency occurs when outputs from education (such as test results or

value-added) are produced at the lowest level of resource. Examine how
education increases both internal and external efficiencies.
Solution
Efficiency in education refers to achieving the best possible outcomes, such
as student learning and development, with the least amount of resources.
There are two main types of efficiencies in education: internal efficiency and
external efficiency. Let's examine how education increases both internal and
external efficiencies:
1. Internal Efficiency:
Internal efficiency in education refers to the optimization of resources within
the educational system to achieve maximum outputs. Here's how education
increases internal efficiency:
a. Reduced Dropout Rates: Education plays a crucial role in reducing
dropout rates by providing students with the necessary support and
resources to stay in school. By ensuring that more students complete their
education, resources are utilized more effectively, leading to higher internal
efficiency.
b. Improved Teacher Quality and Training: Investing in teacher training
and professional development programs helps improve the quality of
instruction in classrooms. Well-trained teachers are more effective in
delivering educational content, leading to better student outcomes without
the need for additional resources.
c. Use of Technology: Integrating technology into education can enhance
internal efficiency by enabling personalized learning experiences,
automating administrative tasks, and providing access to a wealth of
educational resources. Technology can help optimize resource allocation and
improve learning outcomes.
2. External Efficiency:
External efficiency in education refers to the alignment of educational
outputs with the needs of society and the economy. Here's how education
increases external efficiency:
a. Relevant Curriculum: Education systems that offer a relevant and up-to-
date curriculum aligned with the needs of the labor market and society can
enhance external efficiency. Graduates are better prepared to meet the
demands of the workforce, reducing the skills gap and increasing overall
productivity.
b. Partnership with Industry: Collaboration between educational
institutions and industries can help ensure that students acquire the skills
and knowledge required in the workplace. By fostering partnerships with

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employers, educational institutions can improve external efficiency by
producing graduates who are ready to contribute to the economy.
c. Lifelong Learning: Encouraging lifelong learning through continuing
education programs and skill development initiatives can enhance external
efficiency by ensuring that individuals remain adaptable and equipped with
relevant skills throughout their careers. This leads to a more productive
workforce and a more resilient economy.
In conclusion, education plays a crucial role in increasing both internal and
external efficiencies by optimizing resources, improving student outcomes,
and aligning educational outputs with the needs of society and the economy.
By focusing on enhancing internal and external efficiencies, education
systems can maximize their impact and contribute to overall societal
development and progress.

2. The production possibility frontier (PPF) is a curve illustrating the varying

amounts of two products that can be produced when both depend on the
same finite resources. Make a clear explanation of the curve.
Solution
The production possibility frontier (PPF) is a graphical representation of the
maximum output levels of two goods or services that an economy can
produce given its resources and technology, assuming that all resources are
fully utilized and efficiently allocated. The PPF shows the trade-off between
producing one good over another, illustrating the opportunity cost of
allocating resources to one product rather than the other.
The PPF is typically depicted as a curved line on a graph with one good on
the x-axis and the other good on the y-axis. The curve is concave to the
origin, indicating that resources are not equally productive in all activities
and that there is an opportunity cost associated with producing more of one
good at the expense of the other.
Points on the PPF curve represent efficient production levels where all
resources are fully utilized. Points inside the curve represent
underutilization of resources, while points outside the curve are currently
unattainable given the economy's current level of resources and technology.
The slope of the PPF at any point represents the opportunity cost of
producing one more unit of one good in terms of the other good. If the PPF is
a straight line, the opportunity cost is constant; if it is curved, the
opportunity cost changes as more of one good is produced.
Overall, the PPF is a useful tool in economics to demonstrate the concept of
scarcity, trade-offs, and opportunity costs in production decisions. It helps
policymakers, businesses, and individuals understand the limits of
production and make informed choices about resource allocation.

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3. Assess the factors responsible for wastage in the school and suggest
interventions for wastage and stagnation.
Solution
Introduction
Education is a fundamental human right, it is a nearly uncontested
development strategy to tackle several forms of social, political, economic
and geographic inequality in low- and middle-income countries, including
Uganda. This fact about education is well articulated in numerous global
development frameworks, most notably the Education for All Agenda
(UNESCO, 2000), the previous MDGs (Millennium Development Goals), the
subsequent SGDs (Sustainable Development Goals) of 2015. (Datzberger,
2018).
The case of Uganda
Uganda as a country has since 1997, indeed implemented a series of
policies and made substantial budget investments to move in that direction.
For example, introduction of UPE (Universal Primary Education) in 1997
and USE (Universal Secondary Education) in 2007 and the creation of ECD
(Early Childhood Development) centres.
Even though the country has experienced a significant increase in school
enrolment rates because of the above policies and strategies, it has at the
same time displayed one of the highest school dropout rates worldwide at
primary level.
Estimates range from 75.2%4 to 67.9% of pupils who drop out between P1 –
P7 (Uwezo, 2016). According to (Uganda Bureau of Statistics, 2022) there is
a significant reduction in enrolment as in higher classes. Up to 90.2% of
children enrolled in primary education do not complete school. Moreover,
only 25% of those few students who complete primary education proceed to
(lower) secondary education, out of which only 6.1% finish S6 (senior 6) and
above (Uganda Bureau of Statistics, 2017). This whole situation leads to
wastage and stagnation.
Definitions
Wastage
Education wastage is said to happen when there is an imbalance between
education inputs compared to corresponding outputs (UNESCO, 2013). It is
a phenomenon where some children go beyond or spend more time, than the
ideal duration of schooling prescribed for a given level of education. Simply
put, Wastage is a measure of internal efficiency which manifests itself
through drop out and repetition(Samuel, 2017).
Stagnation
Stagnation means failure in class, that is, repetition of classes by a student.
A student continues to remain in one class for more than a year or the
prescribed course is not completed within the allotted time (Dufitumukiza,

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2021). Stagnation is a major factor responsible for wastage, both directly
and indirectly.
Factors responsible for wastage in schools
From the above definition, the two, wastage and stagnation, are related to
each other by a cause-effect relationship; stagnation causes wastage or
wastage is an effect of stagnation. For example, if a student completes five
years courses in seven years’ time it naturally means that he or she has
wasted two years’ time and labour.
Economic factors
For the case of Uganda poverty is one of the reasons students drop out of
school or abandon a school course. In some regions, by the age of 9,
children are withdrawn from schools in order to help the family by doing
some work (Kaume-Mwinzi, 2017). In such a case poverty becomes directly
responsible for wastage.
Poverty and lack of resources can hinder students’ ability to attend school
regularly or afford necessary educational materials. Families living in
poverty often struggle to afford basic necessities, let alone educational
expenses such as school fees, uniforms, books, and transportation
(Babimpa, 2018). Lack of these education resources consequently leads to
drop out.
In poverty-stricken families, students may not be able to accomplish
assignments and homework in time, children may suffer from health
problems such as malnutrition and untreated illnesses, inadequate access
to clean water (Samuel, 2017). Children may take on responsibilities such
as caring for young siblings, household cores and children suffer from social
and emotional stress, anxiety and low self-esteem, social stigma and
discrimination. All these conditions caused by poverty can easily lead to
dropout causing wastage.
Social and political factors
A number of social factors are responsible for wastage in schools
Culturally, some backward classes of people do not take interest in the
education of their children. They do not enjoy adequate social facilities,
because of their social set-up. They are reluctant at keeping their children in
schools (Ofojebe and Okpala, 2021). This causes wastage in schools.
Political instability, such as civil unrest, protests, or conflict, can disrupt
normal educational activities. School closures, curfews, and security
concerns may prevent students from attending classes regularly, leading to
missed learning opportunities and increased dropout rates.
The low literacy level sometimes makes the parents not to see the value of
education and they keep their children out of school. They are prejudiced

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and steeped deep in ignorance. They do not realise that the education of
their children is of vital importance.
In communities where traditional gender roles are entrenched, girls and
boys may have limited exposure to role models who have pursued education
and achieved success. This lack of representation can impact their
aspirations and confidence in their ability to complete their education. They
will consequently drop out of school because of low motivation.
Gender disparities and inequalities in some societies have made the girl
child drop out of school at lower levels of education. Societal expectations
and cultural norms sometimes prioritize boys’ education over girls’, leading
to disparities in access to and completion of education (Gaalya, 2019). In
communities where girls are expected to prioritize household chores or
caregiving responsibilities over schooling, dropout rates among girls may be
higher, increasing wastage.
Closely related to the above is early marriages as one of the factors that can
lead to wastage in schools. In some cultures, the girls are married off early
and they can’t continue their education even at primary stage.
Domestic violence in families is another social factor that is responsible for
wastage in schools. Domestic violence can disrupt children’s school
attendance in various ways (Salam, 2022). They may miss school due to
injuries sustained, they may suffer from emotional trauma, including
anxiety, depression which may affect their academic performance and
consequential drop out.
According to Salam (2022) gender-based violence and harassment, including
sexual harassment and assault, can create hostile environments in schools
that make it unsafe for students to attend. Fear of violence or stigma
associated with reporting incidents can make students to drop out of school
to protect themselves.
Educational Causes
A curriculum that lacks relevance to students’ lives, interests, and cultural
backgrounds may fail to engage them in the learning process. Students may
become disinterested and disengaged, leading to boredom and eventual
dropout especially if they perceive the curriculum as disconnected from their
lived experiences and aspirations.
The school environment that is hostile and unfriendly characterized by
bullying, violence, harassment, punitive disciplinary practices and zero-
tolerance policies that disproportionately target certain groups of students,
or discrimination create an unsafe and hostile atmosphere that can deter
students from attending or participating in school activities. Fear of physical
or emotional harm may lead students to avoid school altogether,
contributing to absenteeism and dropout.

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Poor teaching methods that are dull and boring, overcrowded classrooms
may hinder students’ ability to learn effectively and may lose interest and
motivation leading to drop out. This also can cause wastage in schools.
Other factors may include
The students’ ill health. Ill health can lead to frequent absenteeism from
school, impair students’ cognitive functioning, concentration, and memory,
making it difficult for them to keep up with academic demands, Students
with chronic health conditions or disabilities may experience stigma and
discrimination. This increases the likelihood of dropout.
Natural calamities, such as earthquakes, hurricanes, floods, and wildfires,
landslides, can cause significant damage to school buildings, facilities, and
equipment, rendering them unsafe for use. They can also cause
displacement of families making it difficult for the children to continue with
education and end up dropping out.
Suggested interventions for wastage and stagnation
Having acquainted ourselves with some of the causes of wastage in schools,
it is important that measures to mitigate wastage and stagnation be
investigated. These measures concern all stakeholders of education;
students, parents, teachers, administrators, political leaders and the entire
government. They may include some of the following.
Improvement of Curriculum. Since a curriculum that lacks relevance to
students’ lived experiences and aspirations may lead to wastage and
stagnation, these may be avoided by making the subjects of science and
arithmetic more interesting and relevant to the daily lives of students
(OWHONDAH and NWOSU, 2022). A curriculum that is relevant, interesting,
and engaging for students that incorporates real-world applications, hands-
on learning experiences, and interdisciplinary approaches to make learning
more meaningful should be implemented.
Additionally, the method of teaching should also be made attractive and
learner centred, for example integrating more practical sessions than the
theory part of it.
Society also needs to be sensitized so that there is improvement of
environment in families, changes in the home that create the learning
environment; the changes made should aim at improving and making the
atmosphere healthy and supportive to the learners (Singh, 2023). Parents
should be sensitized to avoid domestic violence that can hinder the children
from regularly attending school.
The school atmosphere and environment should be made academically
conducive to stop wastage and stagnation. To achieve this, it is desirable
that the public, the teachers and the government co-operate. It is necessary
to remove the evil social practices and false values in schools, create
inclusive school cultures that celebrate diversity, respect students’

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identities, and foster a sense of belonging. Implement anti-bullying policies
and peer support programs to create a safe and supportive learning
environment for all students.
The administrators and the inspectors Develop robust data collection
systems to monitor attendance, dropout rates, and academic performance.
Use data to identify at-risk students early and implement targeted
interventions to support their continued engagement and success in school.
Improvement of Health. According to (Singh, 2023) physical development is
necessary for mental development of students. Parents and the entire
community should be sensitized about the value of a balanced diet that
fosters the children’s mental development. In view of the helplessness of the
parents it is the responsibility of the state to take over the charge of
providing food to the future citizens of the country. It is, therefore, necessary
to provide milk and other nourishing food to the school going children. This
is necessary for removing stagnation and for building up healthy citizens.
Stopping child Marriage. Although child marriage has been proclaimed an
offence under the constitution of Uganda, yet this social practice continues.
Unless the society looks down on this practice with contempt, it will not be
stopped. As such, it is the duty of the public and leaders to put an end to
this practice. The government, too, should take effective steps to ensure the
implementation of the constitution regarding this practice.
Improve Access and Equity. Implement policies to ensure equitable access to
education for all students, including those from marginalized communities
(Ehinola, 2019). This may involve providing scholarships, free meals,
transportation support, and targeted interventions for at-risk students.
Enhance Infrastructure. Government should invest in upgrading school
facilities, including classrooms, laboratories, libraries, and sanitation
infrastructure so that there is no congestion and competition for facilities.
Equally, schools should be accessible and safe for students, particularly
those with disabilities.
Implement social welfare programs to alleviate poverty and provide
sustainable financial assistance to economically disadvantaged families.
Offer vocational training and adult education programs to empower parents
and improve household incomes.
Conclusion
By addressing these factors and implementing targeted interventions,
schools can reduce wastage and stagnation, ensuring that all students have
the opportunity to fulfill their potential and contribute meaningfully to
society.

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4. Examine the impact of globalization and technological progress on
human capital.
Solution
Globalization and technological progress have had a significant impact on
human capital in various ways:
1. Increased Skills Demand: Globalization and technological progress have
led to an increased demand for highly skilled workers in sectors such as
information technology, engineering, and finance. This has created
opportunities for individuals to develop and enhance their skills through
education and training programs to meet the demands of the global
economy.
2. Knowledge Transfer: Globalization has facilitated the transfer of
knowledge and ideas across borders, allowing individuals to access
information and expertise from around the world. This has contributed to
the development of human capital by providing individuals with new
perspectives, skills, and opportunities for personal and professional growth.
3. Job Displacement and Reskilling: On the other hand, technological
progress has also led to job displacement in certain industries due to
automation and outsourcing. This has highlighted the importance of
continuous learning and upskilling to adapt to changing job requirements
and remain competitive in the labor market. Individuals need to
continuously invest in their human capital by acquiring new skills and
knowledge to stay relevant in the face of technological advancements.
4. Global Competition: Globalization has increased competition in the labor
market as individuals now compete not only with local candidates but also
with international talent. This has raised the bar for the skills and
knowledge required to succeed in a globalized economy, pushing individuals
to invest more in their human capital to stand out in a crowded
marketplace.
5. Entrepreneurship and Innovation: Globalization and technological
progress have also created opportunities for individuals to become
entrepreneurs and innovators by leveraging their human capital to develop
new products, services, and business models. The ability to think creatively,
adapt to change, and take calculated risks are key components of human
capital that can drive entrepreneurial success in a globalized world.
In conclusion, globalization and technological progress have reshaped the
landscape of human capital by creating both challenges and opportunities
for individuals to develop and enhance their skills, knowledge, and
competencies. To thrive in the rapidly changing global economy, individuals
must continuously invest in their human capital through education,
training, and lifelong learning to adapt to new challenges and seize emerging
opportunities.

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5. Discuss the dynamics of education system design and its impact on
developing countries.
Solution
The design of an education system plays a crucial role in shaping the future
of a country, especially in developing countries. Here are some key dynamics
and impacts of education system design on developing countries:

1. Curriculum and Pedagogy: The curriculum and teaching methods

determine what students learn and how they learn it. A well-designed
curriculum that is relevant to the needs of the society, incorporates 21st-
century skills, and promotes critical thinking can better prepare students
for the challenges of the modern world.
2. Quality of Education: The quality of education is a critical factor in
determining the effectiveness of an education system. A well-designed
education system ensures that students receive high-quality education that
equips them with the knowledge and skills needed to succeed in their
personal and professional lives.
3. Access and Equity: An inclusive education system ensures that all
children, regardless of their background or socio-economic status, have
equal access to education. Education system design should focus on
reducing disparities in access to education and ensuring that marginalized
groups have equal opportunities to learn and succeed.
4. Teacher Training and Support: Teachers play a vital role in the
education system. Therefore, the design of the education system should
include provisions for high-quality teacher training, ongoing professional
development, and adequate support for teachers. Well-trained and motivated
teachers are essential for delivering quality education to students.
5. Infrastructure and Resources: Adequate infrastructure, resources, and
funding are essential for the effective functioning of an education system.
The design of the education system should prioritize the allocation of
resources to areas where they are most needed, such as improving school
facilities, providing learning materials, and ensuring access to technology.
6. Relevance to the Job Market: Education system design should be
aligned with the needs of the job market to ensure that students are
equipped with the skills and knowledge that are in demand by employers.
This alignment can help reduce unemployment rates and promote economic
growth in developing countries.
7. Innovation and Adaptability: A well-designed education system should
be flexible and adaptable to changes in society, technology, and the global
economy. It should encourage innovation in teaching methods, curriculum
development, and educational technologies to ensure that students are
prepared for the challenges of the future.

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In conclusion, the dynamics of education system design have a significant
impact on the development of developing countries. A well-designed
education system can help improve access to quality education, promote
social and economic development, reduce inequalities, and empower
individuals to lead fulfilling and successful lives. It is crucial for
policymakers and stakeholders to prioritize education system design as a
key component of national development strategies.

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