Question

A source of human capital formation is:

• A. Expenditure on health
• B. Expenditure on textiles
• C. Expenditure on industries
• D. Expenditure on building

Answer 1

The correct option is A

Expenditure on health

Expenditure on health makes a man more efficient and, therefore, more productive. His contribution to the production process tends to rise. He adds more to GDP of the nation than a sick person. Expenditure on health, therefore, is an important determinant of human capital formation.