ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Investing in people through nutrition, health care, quality education, jobs and skills helps develop human capital, and this is key to ending extreme poverty and creating more inclusive societies.

Detailed explanation-2: -Singapore has been ranked top in Asia for developing human capital in a new report by the World Economic Forum (WEF).

Detailed explanation-3: -Human capital affects economic growth and can help to develop an economy by expanding the knowledge and skills of its people. The level of economic growth driven by consumer spending and business investment determines the amount of skilled labor needed.

Detailed explanation-4: -In most countries, human capital determines the rate of development, economic, technological, and scientific progress. Human capital leads to more innovations in the areas of production and other related activities. Innovation leads to more growth. Human capital also creates the ability to absorb new technologies.

Detailed explanation-5: -Investment in education and on-the-job training helps to impart these skills and enhance the knowledge base and thus helps in the absorption of new technologies which leads to higher production and thus economic growth. Thus it is evident that human capital contributes to economic growth in various ways.