Question

Explain the term human capital and state two benefits​

Answer 1

Heya..........

Human capital formation refers to the acquisition of the necessary knowledge, skills and capabilities required to produce economic value.It is of critical importance for the growth of an economy.

Benefits of investment in human capital are as follows:-

1)The labour or the people working in any organization are the human resource.

2)This human resource has infinite capabilities and capacities for some beneficial engagement.

3)The means required to convert the human resource to productive units in an economy is human capital formation.

4)For example, education and proper medical facilities are highly important in the process of human capital formation