| Question | Explain how does investment in human capital contribute to growth of an economy. |
| Chapter | Human Capital Formation |
| Class | Class 12 |
| Subject | Economics (Indian Economic Development) |
| Category | Indian Economic Development Class 12 Sandeep Garg Solutions |
Question – Explain how does investment in human capital contribute to growth of an economy.
Answer –
Economic growth can be termed as increase in real national income of the economy. By investing in human capital, an economy can grow. By educating the people and inculcating new skills in them we can increase the productivity which will increase the GDP of the economy.
- Contribution of an educated person is more in the production process in comparison to uneducated.
- Similarly, a healthy person will be able to provide uninterrupted labour supply for a longer time.
Related Questions
- Briefly discuss the meaning of human capital
- How does expenditure on information act as a source of human capital formation
- “Human Capital Formation gives birth to innovation, invention and technological improvements. Do you agree with the given statement? Support your answer with valid arguments.
- Discuss the concept of physical capital
- “Higher productivity and production is the result of investment in human resources.” Do you agree with this statement?
- How does education contribute to economic growth
- What is meant by human capital formation? State its various sources.
- Why government expenditure on tertiary education is important
- How does human capital create both private and social benefits
- How does expenditure on migration act as a source of human capital formation
- Explain how does investment in human capital contribute to growth of an economy
- Discuss the need for on-the-job training for a employees