ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The term human capital formation implies the development of abilities and skills among the population of the country. In order to transform the liability of the huge size of population into assets adoption of various measures for human capital formation is very much essential.

Detailed explanation-2: -Human capital formation refers to the process of adding to the stock of human capital over time. It is the process of acquiring and increasing the number of skilled and experienced people. It is essential for the development of an economy.

Detailed explanation-3: -Meaning of human capital-Human capital refers to the skills and knowledge possessed by an individual. Meaning of human capital formation-Human capital formation is the process of adding to the stock of human capital over time.

Detailed explanation-4: -Human capital is as important as physical capital for economic development. Human capital formation is the process of adding to stock of human capital over time. Human capital can be developed through creation of skilled, trained and efficient labour force by providing better education, health care facilities, etc.

Detailed explanation-5: -Human capital allows an economy to grow. When human capital increases in areas such as science, education, and management, it leads to increases in innovation, social well-being, equality, increased productivity, improved rates of participation, all of which contribute to economic growth.