Question

Why is human capital the most important factor of production ? give three reason.

Answer 1

The concept of human capital refers to the education,on-the job training,and work experience of the labor force. It is analogous to other forms of capital in that investments in human capital yieldincomeand other benefits over a long time. An investment in human capital means investing in education or some form of on-the job training to improveworkforcequality. Such investments provide returns to the individual as well as to the economy as a whole. Individuals benefit from higher earnings, and the economy as a whole benefits from higher productivity.