Which economic principles or models apply in scholarships programs in philippines
Answer (1)
Key Economic Principles and Models Human Capital TheoryScholarships invest in people’s education and skills, which increases their productivity and potential income in the future. This benefits both individuals and the economy by creating a more skilled workforce.Opportunity CostStudents who accept scholarships choose education over working immediately, sacrificing current earnings for future gains. The program also involves government or private funds that could have been used elsewhere.Supply and DemandScholarships help increase the supply of educated workers to meet the demand in various industries, reducing skill shortages and supporting economic growth.Incentive TheoryScholarships provide financial incentives for students to pursue higher education, motivating them to perform well academically and complete their studies.Public Goods and ExternalitiesEducation creates positive externalities—benefits that extend beyond the individual, such as a more informed citizenry and higher economic productivity. Scholarships help address underinvestment in education by making it more accessible.
