Question

4. What is the role of health in human capital formation?

Answer 1

Health plays a very important role in human capital formation in the following ways:

• If an individual is healthy, he or she may have better immunity to fight illness.
• Being healthy will also increase the overall outcome of an individual.
• The health of an individual is directly proportional to the work he does. Thus better health will increase efficiency.

The above-mentioned points prove that if better health care measures are taken up, and an individual in a country becomes more healthy, the human capital and productivity will also increase.

Answer 2

Answer:

Human resources are different from other resources like land and physical capital because human beings can use other resources to give out productive output. However, resources like land and physical capital are dependent on human resource for their use and cannot give any productive output all by themselves.