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Q- Human capital formation increases the efficiency of physical capital. How ??????

Ch 5 Human Capital Formation... Class 12 Economics

Dear Student,
 Human capital helps in the proper utilisation of factors of production. Skilled manpower handle the physical capital in such a manner that it enhances the productivity which in turn helps in the growth of an economy. Human capital help in efficient and effective utilisation of physical capital. Thus we can say that, the formation of human capital can itself lead to improvement in physical capital. In this sense, physical capital formation is a derivative of the human capital formation.


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