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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