Q- How is investment in human capital similar to investment in physical capital? Mention three limitations.
Answer- Human capital refers to the human which were needed for each and every work. The investment in human capital is same as investment in physical capital but the investment in human capital is more beneficial than physical capital in future. The government of a particular country has to do some investment in human capital in form of education and health status. The education system and health care facility should be improved.
Nowadays the countries such as Japan, America e.t.c. are more developed as they invest in human capital.
On the other hand there are several limitations of investment in human capital.
The three limitations of investment in human capital is similar as physical capital are as follows:
1. Healthier the people more they work and more they can produce and earn therefore increases the productivity of country.
2. If there is development of human capital, it helps in the development of physical capital of a country.
3. If investment in human capital is done in form of education and health, it can add value to a human resource then it can bring changes in other resources too.