Question 24 - Teachoo Sample Paper - Social Science Class 9 - Paper 1 - Teachoo Sample Paper - Social Science Class 9

What are the two types of human capital formation? Explain them briefly.

Answer:

Answer by Student

The two types of human capital formation are expenditure on education and expenditure on health .

• Expenditure on education refers to the investment made by individuals or societies to acquire knowledge and skills that enhance the productivity and employability of the workforce.
• Expenditure on health refers to the investment made by individuals or society to improve the physical and mental well-being of the population, which also increases the efficiency and quality of work.

Detailed Answer by Teachoo

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Human capital formation is the process of increasing the knowledge, skills, abilities, and health of the people in a country. It is an important factor for economic growth and development. The two types of human capital formation are expenditure on education and expenditure on health . These are also called social overheads , as they benefit not only the individuals but also the society as a whole.

• Expenditure on education refers to the investment made by individuals or society to acquire knowledge and skills that enhance the productivity and employability of the workforce. Education helps people to learn new things, develop creativity, improve communication, and adapt to changing situations. Education also helps people to become aware of their rights and duties, and participate in social and political activities. Expenditure on education includes spending on schools, colleges, universities, vocational training, adult literacy, etc.
  
  
• Expenditure on health refers to the investment made by individuals or society to improve the physical and mental well-being of the population, which also increases the efficiency and quality of work. Health helps people to prevent and cure diseases, reduce mortality and morbidity, and enjoy a longer and happier life. Health also helps people to reduce absenteeism, increase productivity, and save medical costs. Expenditure on health includes spending on hospitals, clinics, medicines, immunization, sanitation, nutrition, etc.
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