Question

Investment in human capital can be made through​

Answer 1

Investment in human capital through education training and medical care yields a return just like investment in physical capital. Higher income is earned because of higher productivity of the more educated or the better trained persons, as well as the higher productivity of healthier people.

Answer 2

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Human capital is an intangible asset not listed on a company's balance sheet and includes things like an employee's experience and skills. Since all labor is not considered equal, employers can improve human capital by investing in the training, education, and benefits of their employees.