Question

why is Human Capital considered superior to other resources like land and physical capital? name the factors that affect the quality of population. explain how these factors help in human capital formation.

Answer 1

human capital is considered superior because with the help of human capital we can use other resources

Answer 2

Why is Human Capital considered superior to other resources like land and physical capital? Name the factors that affect the quality of the population. Explain how these factors help in human capital formation.

Answer:

• Human Capital is superior to other resources like land and physical capital because it helps with the utilisation of other resources efficiently.
• When other resources have been used the productivity of the country increases, which means there is an increase in the GDP.
• Factors that affect the quality of the population include:

1. Literacy rate: calculates the number of people who can read and write in a given population.  The literacy rate adds to the human capital formation of the country because education provides people with fundamental skills to individuals which help them to be employed.
2. Life expectancy is the number of years an individual is expected to live. Both a high life expectancy and low life expectancy affect human capital formation. A higher human capital formation results in population ageing, whereas a lower life expectancy contributes to a decrease in human capital formation.
3. Training : skill development and training help the population to increase productivity and employment.
4. Health care: A healthy population contributes more to productivity and an unhealthy population contributes to decreasing productivity and minimises the incentives to invest in human capital.

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