ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -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-3: -An increase in capital per hour (or capital deepening) leads to an increase in labor productivity.

Detailed explanation-4: -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-5: -Investments in human capital encourage employees to work together and identify improvements that will directly benefit them. Those investments often prompt the opening of communication lines between departments and management levels, allowing human capital to flow more freely within the organization.