DE LA SALLE UNIVERSITY

Department of Economics
Second Examination

Subject Name: Facts about the economy and readings (FDNECON)

Percentage out of Final Grade: 25%
Coverage: Lecture 5 and 6
Total Points: 25 points
Due Date: November 21, 2021 (Monday 11:59pm) via Canvas Assignment

MECHANICS AND GRADE BREAKDOWN OF THE EXAMINATION

1. The total points earned by a student for the examination is twenty-five (25) points – which is broken
down into the following:
a. Handwritten Report- 6 points out of 25 points
b. PowerPoint Presentation Slide- 14 points out of 25 points
c. Show and Tell (During Feedback Session)- 5 points out of 25 points
2. Second Examination will be accomplished by group. A group can be composed of 3-4 members only.
Also, only 1 submission is needed per group with 1 grade given per submission.
3. Submit your outputs (1 submission should include Word file AND PPT file) to Canvas on November 21 at
11:59pm. For Part A questions, you can submit in PDF file on top of the Word file if you want.
Submissions post-November 21 will automatically not be entertained.
4. Any deviations from the instructions will warrant a deduction from your final score.
5. Except for Part B- Question 4, any answer not found in the article/ readings or lecture notes/discussion,
no matter how correct may be, would not be awarded any points. TRY NOT TO GOOGLE your answers.

HANDWRITTEN REPORT GUIDELINES (FOR PART A QUESTIONS)

1. Handwrite all your answers in a yellowpad/scratch bond paper for Part A Questions.
2. Write your complete name/s and ID number/s on the first page of your output before proceeding to
answer any question.
3. Write the question NUMBER before providing any answer.
4. Indicating the question number would suffice.
5. All answers must be rationalized by accompanying numerical or graphical solutions if asked or whenever
applicable. All explanation or essay answer should only be briefly answered.
6. Scan/picture your answers CLEARLY and COMPLETELY then compile them in a Microsoft Word file.
Please make sure the questions are compiled and arranged in CHRONOLOGICAL ORDER.
7. Only 1.5 PAGE of Word file should be submitted. NO MORE, NO LESS.

POWERPOINT SLIDE GUIDELINES (FOR PART B QUESTIONS)

1. Prepare a PowerPoint Presentation to answer Part B Questions.
2. Only 13 SLIDES of the Powerpoint Presentation would be submitted INCLUDING title and bonus slide in
which your name/s is/are indicated. NO MORE, NO LESS.
3. Take note how many SLIDES are allotted per question. Do NOT combine 2 questions in one slide.
4. Please use the following format:
o Font type: Any
o Font size: minimum of 20
5. Indicating the question number would suffice.
6. Design of the PPT is not graded. Aesthetic does not contribute anything to your final score. Of course,
organization matters. How one organizes the highlights on the PPT slides plays a part. So, no need to use
Canva or any fancy app. A PPT slide being saved as an image file would warrant deductions. Inclusion of
images in the PPT is allowed.
7. Submit in PPT file format upon completion.

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SHOW & TELL GUIDELINES
1. During our November 22, 2022 (Tuesday) sync class, all groups would be asked to explain any
randomly selected question in the guidelines.
2. The faculty may or may not flash the submitted output during the sync session.
3. The member explaining the group’s answer should be able to concisely present the solutions/details.
4. If ALL members of the group would be absent or late when called to explain would automatically receive
a “0” grade in the Show and Tell component as they are not present during the assessment’s
presentation.

Part A (Questions 1-3): HANDWRITTEN REPORT (6 points)- ONLY 1.5 PAGES Word file

Part A-Question 1
What’s the human capital approach and what is it use for? Then explain the private returns & costs of education
and the social returns & costs of education. Based on the lecture notes, why is it private returns are normally
higher than social returns of education?

Part A-Question 2
In the small barangay of “Wang- Wang”, the census is easy because only eleven people are left. The poorest town
residents get and spend Php300 per week while two very poor rural households spend just Php100 week. One
haciendero spends Php3000 and pays his maid Php500 weekly. The panadero makes Php800, while sole taxi
driver earns Php1000. The barangay captain spends Php2000 and sari-sari store owner earns Php1700 per
week. A recently laid off OFW came home in the barangay and only earns PhP200 weekly. Total barangay
consumption and income are Php10,000. Assume that no one saves so household and “per person”
consumption/income are the same. Suppose the official poverty line consumption, call it Yp, is Php400 per week
per person (a little above the $1.25 a day).
a) At the poverty line at Php400, how many people are poor? What poverty measurement is this called?
b) How much money it would take to raise all the poor’s income to Php400 reported as a % of total
consumption or income? What poverty measurement is this called?
c) What is the average amount by which the income of a poor person falls below the poverty line? What
poverty measurement is this called?

Part A- Question 3
a) Consider the following table with individuals in a country and their income per person. Fill in the
following table and add the necessary columns.
Population Income per Person (in dollars) Quintiles
4 4
4 8
2 16
2 20
2 28
2 40
1 44
1 60
1 80
1 100
TOTAL 20
b) Explain how income inequality can be seen in the data. No more than TWO sentences.
c) Using the table/data in sub-question (a), draw the Lorenz curve. Complete all notations in your X and Y
axis. Concept-wise, explain the meaning of the Lorenz curve along with the perfect equality line.
Maximum of TWO sentences for the explanation.
d) Theoretically or concept-wise, what is the Gini coefficient? Why is there a need for a Gini coefficient if
one can see income inequality from the Lorenz curve? No more than THREE sentences.
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Part B (Questions 1-5): POWERPOINT SLIDE (14 points)

Part B-Question 1 (1 PPT slide):

Explain why the Aquino administration pushed for the K-12 educational system despite the citizen’s outcry
against the added years of education. Apply the concepts learned in class. Graph or draw if necessary. The
drawing can be a scanned picture of a handwritten graph. Make sure to include all parties involved.

Part B-Question 2 (3 PPT slides):

a) How does the article define “vulnerability to poverty”? Is it the same as being poor? What does it mean?
b) Itemize poverty vulnerability measures like idiosyncratic shocks and covariate shocks. Which kind of
shock affect majority of the households (whether poor or not) more? Explain WHY. Do you agree to this
explanation why this kind of shock MAY make a household more vulnerable to being poor? Why or why
not?
c) Profile the household heads of HHs who are vulnerable to poverty and/or poor.
d) Profile the household heads of HHs who are not vulnerable to poverty and/or poor.
e) What are some factors that would make a HH who was initially non-poor to slip down into poverty?
f) Based on policy recommendation, how do one increase investment in education? Itemize only.
g) Based on policy recommendation, how do one target agriculture development? Itemize only.
h) Based on policy recommendation, how do one employment opportunities and quality? Itemize only.
Source: “Estimating Filipinos’ vulnerability to poverty” by Christian D. Mina and Celia M. Reyes (2017)

Part B-Question 3 (2 PPT slides):

a) How does nutrition play a role in the concept of poverty? Explain the concept of nutrition-based poverty
trap by using “poverty trap” as your starting point. Cite empirical facts and sample seen across the
chapter.
b) Does the lack of food contribute to problem of poverty? Explain and defend your stand by citing
empirical facts found in the chapter.
c) Is there really a billion hungry people?
Source: “Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty” by Abhijit V.
Banerjee and Esther Duflo Chapter 2: A Billion Hungry People?”

Part B-Question 4 (3 PPT slides):

a) What sector is usually the victim of stunting? State the age group they usually start to stun in their
childhood years? How many children had stunned growth back in 2015? What percentage are affected
in the age group? (No need to google this.)
b) What factors causes stunting? Itemize them according to the article. NO NEED TO EXPLAIN.
c) What are its consequences of stunting AT SCHOOL AGED children? Itemize them according to the article.
NO NEED TO EXPLAIN. Do not look at the figure stated in the article. Look at the written observation.
d) In relation to education, what is the effect of childhood stunting based on the article?
e) Why do you think the Philippine government (specifically the Department of Health) should monitor
childhood stunting? Since this is an economics subject, relate the importance of the government’s
monitoring to the Philippine economy.
f) What is the CCT Program in the Philippines? In tagalog, what is its name? In one sentence, how does it
work? (You can google this part.)
g) Explain in 2-3 sentences how the CCT program can help childhood stunting?
h) Explain in 2-3 sentences how PhilHealth can help childhood stunting?`
Source: “Preventing childhood stunting: Why and how?” by Alejandro N. Herrin

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Part B-Question 5 (2 PPT slides):
a) Who benefits and loses from an untargeted tuition subsidy for students in SUCs? Itemized the benefits
and losses per party involved.
b) What is the effect on free tuition subsidy on technical and vocational education and training (TVET)?
c) What should have been a better alternative than the untargeted tuition subsidy? Explain the program.
d) Knowing that investment in human capital is always beneficial, would the government benefit from this
subsidy? In what way?
Source: “Who benefits and loses from an untargeted tuition subsidy for students in SUCs?” by Aniceto C.
Orbeta Jr. and Vicente B. Paqueo

Part B- BONUS (1 PPT slide)

a) Explain the demand and supply for education. Maximum of FOUR sentences.

Disclaimer: I do not mind if you answer any question by quoting the answer word-for-word from the assigned
articles/readings/lecture notes. Of course, if you want to do this, cite the answer by using quotation marks to
connote direct citing and state the title of reading/article at the end as a source.

-END-

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