Question

1a .What is Human Capital? Explain. How does increasing the level of Human Capitalacross the nation improve Economic Growth in terms of the GDP, job growth, andsocial progress? Include a detailed description and definition of any terms or concepts you are using in your explanations. Your explanation should include a properly labeled graph.

1b How does Human Capital augment the other forms of spending in Growth Policy?In other words, why is Human Capital a necessary component of long term progress, not just a possible category? Explain.

Answer 1

1b) Since human capital and economic growth are positively related , it becomes a necessary category for long term progress. Investing in human capital e.g. better health and better education to develop higher skills have a long term effect. Individuals with good health will thus contribute to higher productivity and higher education and technical skills leads to quality growth coupled with added productivity It thus becomes an asset to the economy and an inevitable factor for its long-term growth