Explain how investment in education stimulates economic growth.

Education prepares people for the ever-changing situations by developing values, aptitudes, knowledge and skills. It provides capacity and flexibility to the people and enables them to contribute in the economic development of the country. General education raises the level of understanding of the people and technical education makes siginificant contribution in raising efficiency and productivity by encouraging science and technology in the country. Medical education improves the health of the people. Education generates consciousness towards nation, society and development. It promotes scientific outlook. Human beings without education be only a unskilled manpower. Investment in education gives them additional skills to do the same job more efficiently or variety of other jobs. Education converts human beings into human capital. The human capital represents the enhanced labour productivity which is an acquired ability and an outcome of deliberate investment decisions.