Question

Explain the term human capital and state its 2 function ?

Answer 1

Human capital-
The aim of production is to produce goods and resources that we want. There are requirements for production of goods and services. The first three are land, labour and physical capital. To be able to put together these three and produce an output either to use it yourself or to sell it in the market, there is a fourth requirement too, which is called human capital. In simple words human capital refers to the stock of knowledge, habits, social and personality attributes, including creativity, embodied in the ability to perform labour so as to produce economic value.
Functions- 
1. The major function of human capital is to work hard, upgrade their existing knowledge and contribute in their own way to increase the productivity as well as output.
2. Human capital make efficient use of its country's other resources like land and labour in such a way so that their country can become developed.