EDUCATION (CBSE/UGC NET)

Detailed explanation-1: -A knowledge-based economy is characterized by dependence on a highly-skilled, well-educated, and technically-minded workforce. It makes use of advancements in technology alongside intellectual capital to move away from material consumption and aim toward an economy built on knowledge and data.

Detailed explanation-2: -The focus of economics of education is to optimum use of educational resources, tools and techniques to achieve the educational objectives. Thus the economics of education is a science of allocating scarce educational resources among competing alternatives to education in order to achieve its goals.

Detailed explanation-3: -With investments in human capital, such as education, three major economic effects can be expected: increased expenses as the accumulation of human capital requires investments just as physical capital does, increased productivity as people gain characteristics that enable them to produce more output and hence.

Detailed explanation-4: -Increasing the level of education in society increases the production capacity by increasing the quality of labor. An increase in the quality of labor can be achieved through investment in human capital. Therefore, there is a relationship between the increase in the education level of the workforce and economic growth.