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Asynchronous Activity 4 (Research Human Resources As A Critical Source of Economic Growth)

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Herly Mae Bautista
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9 views3 pages

Asynchronous Activity 4 (Research Human Resources As A Critical Source of Economic Growth)

Uploaded by

Herly Mae Bautista
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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UNIVERSITY OF SAINT ANTHONY

(Dr. Santiago G. Ortega Memorial)


City of Iriga

SCHOOL OF GRADUATE STUDIES AND RESEARCH

Name: Herlyn Mae C. Bautista Course: EDUC 237


Major: MAEd Admin and Supervision Professor: MA. Genoviva N. Quiano, PhD

Asynchronous Activity 4
RESEARCH

Human Resources as a Critical Source of Economic Growth

Human resources, the knowledge, skills, and experience possessed by a workforce, are widely
considered a critical engine of economic growth. Just as a well-oiled machine needs quality parts to
function efficiently, an economy thrives when its people have the capabilities to innovate, produce, and
contribute meaningfully.

Resource Constraints and Economic Exchange

Theory of Constraints: Eliyahu M. Goldratt's TOC posits that any system will have at least one constraint
that limits its overall output. In economics, this constraint can be a shortage of skilled labor, raw
materials, or financial resources.

Production Possibilities Curve: This economic model illustrates the trade-offs an economy faces when
allocating resources between producing two different goods or services. The curve depicts the
maximum attainable production for one good given a specific production level of another, highlighting
the concept of scarcity.
Market Failure and Government Intervention

Market Failure: A situation where the free market fails to allocate resources efficiently, resulting in a
suboptimal outcome. Several factors can cause market failures, including:

Public Goods: Certain goods, like national defense or lighthouses, benefit everyone and cannot be easily
excluded from those who don't pay. The market may under-provide these goods.

Externalities: The actions of producers or consumers can create costs or benefits for others outside the
market transaction. For instance, a factory's pollution imposes a cost on society (negative externality),
while a company's job training program benefits the community (positive externality).

Imperfect Information: Asymmetric information, where one party has more information than the other,
can lead to market inefficiencies.

The Basis for Government Intervention: Market failures can prompt government intervention through
regulations, taxes, subsidies, or public provision of goods and services. The goal is to create a more
efficient and equitable economic outcome.

Money, Inflation, and Interest Rates

Money: The medium of exchange, unit of account, and store of value used to facilitate transactions in an
economy.

Inflation: A persistent increase in the general price level of goods and services in an economy over time.
Moderate inflation can encourage spending, but high inflation creates uncertainty and discourages
investment.

Interest Rates: The cost of borrowing money, typically expressed as an annual percentage. Interest rates
impact investment, consumer spending, and economic growth.

Economic Growth and Development

Economic Growth: An increase in the inflation-adjusted market value of the goods and services
produced by an economy over time.

Economic Development: The broader improvement in living standards and quality of life within a
country or region. Economic growth is a necessary but not sufficient condition for economic
development.

Investment in Human Resources

Education and Training: Equipping individuals with the knowledge and skills they need to be productive
members of the workforce. This includes primary, secondary, vocational, and higher education, along
with job training programs and skill development initiatives.

Healthcare: A healthy workforce is a more productive workforce. Investments in healthcare systems


ensure a population is well enough to participate in the economy.
Work-life Balance Policies: Policies that support a healthy balance between work and personal life can
contribute to employee well-being, job satisfaction, and ultimately, productivity. Examples include
parental leave, flexible work arrangements, and subsidized childcare.

Causes of Market Failure:

Imperfect Competition: When markets lack perfect competition, with many buyers and sellers and freely
available information, some firms may exert undue market power, leading to inefficiencies in pricing and
resource allocation.

Public Goods and Externalities: As discussed previously, public goods and externalities can lead to
under-provision or over-provision of certain goods and services in a free market.

By understanding these concepts and the role of human resources, policymakers and educators can
create environments that foster economic growth and development through a skilled and healthy
workforce.

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