Question

"Investment in human capital yields a return just like in physical capital". Explain the statement in 100 words.

Answer 1

The above statement "Investment in human capital yields a return just like in physical capital" is true . It is so because when investment is made on the education and health of the people, they in return adds up to the national income of the country. As such people then become assets and gives full involvement in production process. Similarly, investment in physical capital also develops resources adding to the national income of the country. In this way investment in both human and physical capital is vital for the economy of a nation.