ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -If the labour force can be made more efficient through better education, training and health facilities then that human resource in a nation would be considered as the human capital. Hence, the stock of skill, ability, education and knowledge of people in a nation, at a point of time, refers to human capital.

Detailed explanation-2: -Human capital consists of the knowledge, skills, and health that people invest in and accumulate throughout their lives, enabling them to realize their potential as productive members of society.

Detailed explanation-3: -Human capital is the stock of ‘skill and expertise’ of a nation at a point of time.

Detailed explanation-4: -Skills are a subset of human capital specific to a particular task, job or enterprise and are obtained through specialized education or training, such as carpentry or dentistry. Human capital and skills may play different but complementary roles in the growth and development of the private sector.

Detailed explanation-5: -1) What is human capital formation? Answer: 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.