Question | Explain how does investment in human capital contribute to growth of an economy. |
Chapter | Human Capital Formation |
Class | Class 12 |
Subject | Economics (Indian Economic Development) |
Category | Indian Economic Development Class 12 Sandeep Garg Solutions |
Question – Explain how does investment in human capital contribute to growth of an economy.
Answer –
Economic growth can be termed as increase in real national income of the economy. By investing in human capital, an economy can grow. By educating the people and inculcating new skills in them we can increase the productivity which will increase the GDP of the economy.
- Contribution of an educated person is more in the production process in comparison to uneducated.
- Similarly, a healthy person will be able to provide uninterrupted labour supply for a longer time.
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