question_answer 1)

What are the two major sources of human capital in a country?

Answer:

Human capital refers to the Stock of skill and, expertise of a nation at a point of time. The two major sources of human capital in a country are (i) Investment in education (ii) Investment in health Education and health are considered an important input for the development of a nation. A better educated person has greater skills and knowledge and therefore greater opportunity to work and earn higher income. Similarly, a healthy person is an asset for the nation as he is more productive than a sick person, who is unable to work efficiently due to bad health. Hence, expenditure on education and health is an important source of human capital formation.