How does education contribute to economic growth

Question How does education contribute to economic growth?
Chapter Human Capital Formation
Class  Class 12
Subject Economics (Indian Economic Development)
Category Indian Economic Development Class 12 Sandeep Garg Solutions




Question – How does education contribute to economic growth?

Answer –

Investment in education is considered the main source of human capital formation.

  • Education is the process of teaching, learning and training especially in schools or colleges to improve knowledge and develop skills.
  • Expenditure on Education is a way of enhancing and enlarging a productive workforce in a country.
  • Labour skill of an educated person is more than an uneducated person, because education generates technical skills and creates a manpower which is suited for improving labour productivity.
  • Spending on education by individuals is similar to spending on capital goods by companies with the objective of increasing future profit over a period of time.
  • The difference between benefit and cost of education measures the market value of human capital formation.




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