Question

How is health expenditure a source of human capital formation?

• A. It directly increases the supply of healthy labour force
• B. It isn't a source of human capital formation
• C. Because it is mentioned in labour laws
• D. None of the above

Answer 1

The correct option is A It directly increases the supply of healthy labour force

Health expenditure is a source of human capital formation as a healthy workforce will be more productive than a unhealthy one. Thereby, health expenditure increases supply of healthy labour force and greater productivity and efficiency.