INSIGHT UPSC QUIZ

GS Economy Miscellaneous
Q.

Investment in human capital formation is often considered as most efficient and growth enhancing. Which among the following are considered as the main sources of human capital?

1. Investment in education.

2. Migration for better jobs.

3. On the job training.

4. Investment in Health.

Select the correct answer using the code given below:

Explanation:

ANSWER: (D)

  • Investments in education convert human beings into human capital; human capital represents enhanced labour productivity, which is an acquired ability and an outcome of deliberate investment decisions with an expectation that it will increase future income sources. 
  • Investment in education is considered as one of the main sources of human capital. There are several other sources as well. Investments in health, on- the- job training, migration and information are the other sources of human capital formation. 
  • People migrate in search of jobs that fetch them higher salaries than what they may get in their native places.
  • Migration involves cost of transport, higher cost of living in the migrated places and psychic costs of living in a strange socio- cultural setup. The enhanced earnings in the new place outweigh the costs of migration; hence, expenditure on migration is also a source of human capital formation. 
  • Investment in human capital formation is considered as efficient and growth enhancing. 

More Questions Selected Just For You. Attempt Now!