Q- “Investment in human resource via education and health can give high rates of return in future.” Support the statement with any three suitable arguments.
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.
Education as well as health helps in the human capital formation by the following ways:
1. Development in health care sector can be proven beneficial as if the person would be healthy so he or she can do the work with full potential and could do it well.
2. Investment in human resource forms it a human capital that would be very beneficial in the future.
3. One can earn higher income because of higher productivity of the more educated or better trained person, thus contributing toward human capital formation.