Question

What is meant by human capital formation? How does investment in human capital yield a return just like investment in physical capital.

Answer 1

Human capital formation is the development in human capital that is development in education and health facilities to develop the human beings.
Investment in human capital yield a return just like investment in physical capital because more the development in the human capital that is development in education and health facilities, this will make human being more comfortable and they will be able to do more work and they will try to work after working hours also and this will help in the development of the economy of the country. in this way the yield return just like a physical capital.
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Answer 2

Answer:

when the existing human resource is further developed by becoming more educated and healthy. we call it human capital formation that adds the productive power to the countries just like as physical capital formation.

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