Question

How is expenditure regarding on-the-job training a source of human capital formation?

• A. It increases their living standard
• B. It increses labour productivity
• C. It increases their income
• D. None of these

Answer 1

Answer: (B)

It increses labour productivity

Expenditure incurred on on-the training is a source of capital formation as it helps in increasing labour productivity, reduces labour turnover and boosts employee morale.