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TEA [102]
3 years ago
15

Investment in human capital has resulted in increase in efficiency and production. Explain with suitable examples.​

Geography
1 answer:
Eddi Din [679]3 years ago
8 0

Answer:

  • Human capital and economic growth have a strong correlation. Human capital affects economic growth and can help to develop an economy by expanding the knowledge and skills of its people.

  • Human capital refers to the knowledge, skill sets, and experience that workers have in an economy. The skills provide economic valuesince a knowledgeable workforce can lead to increased productivity. The concept of human capital is the realization that not everyone has the same skill sets or knowledge. Also, the quality of work can be improved by investing in people's education.

Example

  • if a country has a GDP rate of 2.5% for the year, it means the economic growth of the country rose by 2.5% from a year earlier. In order to determine how human capital impacts growth, we must first look at two key drivers of economic growth in an economy.
  • It's estimated that consumers are responsible for more than two-thirds of the economic growth in the U.S. economy. As consumers become employed or experience wage increases, they tend to increase their purchases of clothes, cars, technology, homes, and home goods such as appliances. All of that spending creates a positive ripple effect leading to improved employment in various industries such as retail, auto manufacturers, technology stores, and home builders, to name a few. The spending also leads to higher GDP growth throughout the economy.
  • Explanation:

hope it helped u buddy

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