TAKE FREE POINTS AND ANSWER THESE QUESTIONS 1) How can the population be converted from a liability into an asset? Q2) What do you understand by Human Capital Formation? Q3)What is a Virtuous Cycle? Q6) What is a vicious cycle?
Answers
Ans. Population refers to the no. of people living in a country at a particular time period. Population can be turned into a productive asset by investment in human capital through:
a) spending money on education and health.
b) training of industrial and agricultural workers so that they can use the latest technology.
c) use of scientific research.
Q2) What do you understand by Human Capital Formation?
Ans. Human capital is the stock of skill and productive knowledge embodied in the people. The process of investment in human capital through education, better health facilities, training etc is known as human capital formation.
BENEFITS OF HUMAN CAPITAL FORMATION
1)It adds to the quality of labour by improving the productivity of an individual.
2)It can give a higher return in the form of higher earnings.
3)It can lead to higher economic growth of the society.
EXAMPLE: Japan did not possess sufficient natural resources and imported most of them after being devastated by bombs. But at the same time they invested in human capital in the form of better education and health facilities. This investment has enabled the people to make efficient use of other resources, thereby making the country economically developed.
Thus, Human capital is superior to other factors of production because human resources can make use of land and capital but land and capital cannot become useful on their own. Land and other resources are fixed but human resources can be nurtured through education and health.
Q3 What is a Virtuous Cycle?Virtuous Cycle is an unending process where one good event leads to another good event which in turn promotes the first good event and the cycle goes on. For Eg: Educated and healthy parents look after the health, nutrition and education of their children who in turn become educated and healthy parents and the cycle goes on.
Q6) Vicious Cycle is an unending process where one bad event leads to another bad event which in turn promotes the first bad event and the cycle goes on. For Eg: Uneducated and unhealthy parents do not look after the health, nutrition and education of their children who in turn become uneducated and unhealthy parents and the cycle goes on.
Answer:
1= A large population can be turned into a productive asset by investment in human capital by spending resources on education and health for all, training of industrial and agricultural workers in the use of modern technology, and useful scientific researches, etc.
2= Human capital formation is the process of adding to the stock of human capital over time. Human capital can be developed through the creation of skilled, trained, and efficient labor force by providing better education, health care facilities, etc.
3= The terms virtuous circle and vicious circle, also known respectively as virtuous cycle and vicious cycle, refer to complex chains of events that reinforce themselves through a feedback loop. A virtuous circle has favorable results, while a vicious circle has detrimental results.
6= a sequence of reciprocal cause and effect in which two or more elements intensify and aggravate each other, leading inexorably to a worsening of the situation.
Explanation:
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