7. How does investment in education and health give higher returns to individual and
nation? Give any three points.
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(i) One can earn higher income because of higher productivity of the more educated or better trained persons, thus contributing towards human capital formation.
(ii) Investment in education of human resource results in the formation of human capital.
(iii) As it is said health is wealth a healthy person capacity to work increases and and he becomes more productive and hence earns more.
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Answer:
One can earn higher income because of higher productivity of the more educated or better trained persons, thus contributing towards human capital formation. (iii) Investment in human resource via education and medical care can give higher rates of return in the future.
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