Question

What do you mean by expenditure on health in human capital formation?​

Answer 1

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$\large{\underline{\underline{\tt{\pink{Expenditure}}}}}$

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• Expenditure directly increases the supply of healthy labour force and is, thus, a source of human capital formation.
• Expenditure regarding on-the-job training is a source of human capital formation as the return of such expenditure in the form of enhanced labour productivity is more than the cost of it.

Answer 2

Answer:

Expenditure directly increases the supply of healthy labour force and is, thus, a source of human capital formation.

Expenditure regarding on-the-job training is a source of human capital formation as the return of such expenditure in the form of enhanced labour productivity is more than the cost of it.