ECONOMICS
HUMAN CAPITAL
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It forces the government to raise taxes.
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It makes workers more efficient.
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It forces businesses to employ more people.
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It reduces economic barriers to trade.
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Detailed explanation-1: -The formation of human capital raises production levels and leads to economic growth by adding to the GDP. Knowledgeable and skilled workers can make better use of resources at their disposal.
Detailed explanation-2: -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.
Detailed explanation-3: -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.
Detailed explanation-4: -(a) Higher Productivity. Investment in human capital yields a return just like an investment in physical capital. This can be seen directly in the form of higher incomes earned because of the higher productivity of the more educated or the better-trained persons as well as the higher productivity of healthier people.
Detailed explanation-5: -Investment in Human Capital means making humans as human resources, i.e, to make them productive so that they contribute to the nation and society. This requires giving them education, medical care, relevant skills etc. Was this answer helpful?