What is required to produce more human capital out of human resources?

Investment in building capital

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Investment in physical capital

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Investment in human capital

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Investment in land capital

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Solution

The correct option is C
Investment in human capital

If the growing population can be provided with better health, education and training facilities, the quality of labour can be improved to a large extent. Hence, the population becomes human capital, when investments are made in the form of education and health.

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How does investment in human capital contribute to growth?

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