how human capital is an asset and a liability

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Solution

4. Human capital is an asset to a country when proper education and health care has been provided to the people. With education people can become skilled as labourers and good health will make them physically fit to work as abled labourers.
Similarly, human capital becomes a liability when there are no skilled and abled labourers who can contribute to the growth of the economy. This basically happens in absence of education ad health care facilities.

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Similar questions

Q. Give one example of each of the following transactions:
(i) Increase in an asset and a liability.
(ii) Decrease in an asset and a liability.
(iii) Increase in assets and capital.
(iv) Decrease in assets and capital.

Q. Capital = Liability - Assets

Give an example for each of the following types of transaction.
(i) Increase in one asset, decrease in another asset.
(ii) Increase in asset, increase in liability.
(iii) Increase in asset, increase in owner's capital.
(iv) Decrease in asset, decrease in liability.
(v) Decrease in asset, decrease in owner's capital.
(vi) Decrease in liabilities, increase in owner's capital.
(vii) Increase in one liability, decrease in another liability.
(viii) Increase in liabilities, decrease in owner's capital.

Q. If Capital =

70, 000

; Liability =

40, 000

Find Assets.

Q. Capital of business is Rs. 75,000 and liability is Rs. 25,000 then total assets of business would be ___________.

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