ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -While human capital focuses on t investment in education and health sector to increase productivity and efficiency of workforce, on the other hand, human development focuses on investment in education and health sector to increase the general well being and standard and quality of living of human capital.

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: -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-4: -Human capital theory emphasizes how education increases the productivity and efficiency of workers by increasing the level of cognitive stock of economically productive human capability, which is a product of innate abilities and investment in human beings.

Detailed explanation-5: -Human capital can be broadly defined as the stock of knowledge, skills and other personal characteristics embodied in people that helps them to be productive.