Establish the need for acquiring information relating to health and education expenditure for the effective utilisation of human resources.

Solution

We need investment in human capital to produce more human capital out of human resources because a sick person or an ill person can not contribute to the work rather he/she will try to abstain from work, that will result in loss of productivity. Hence, it is important to know that how much expenditure is required to make a person healthy and literate.

People spend to acquire information relating to the labour market and other markets like education and health e.g. people want to know the level of salaries associated with various types of jobs, whether the educational institutions provide the right type of employable skills and at what cost. This information is necessary to make decisions regarding investments in human capital as well as for efficient utilisation of the acquired human capital stock. Expenditure incurred for acquiring information relating to the labour market and other markets is also a source of human capital formation.

Some More Questions From Human Capital Formation In India Chapter

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Human Capital Formation In India

Establish the need for acquiring information relating to health and education expenditure for the effective utilisation of human resources.

Some More Questions From Human Capital Formation In India Chapter

What is 'on the job training'?

Give the different forms of 'on the job training'.

Why is expenditure regarding on-the-job training a source of human capital formation?

What is investment in education?

Mention on the main forms of development of human resources.

What do you mean by health?

What is social infrastructure?

What is meant by human resource development?

Why is technical education essential?

When was New Education Policy announced?

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