Question:
“There exists a positive correlation between human capital formation and economic growth of a nation.” Justify the given statement with valid explanation.
“There exists a positive correlation between human capital formation and economic growth of a nation.” Justify the given statement with valid explanation.
Show Hint
Human capital formation drives productivity, innovation, and economic development by enhancing the workforce's skills and health.
Updated On: Jan 23, 2026
Hide Solution
Verified By Collegedunia
Solution and Explanation
Higher Productivity: Investment in education, health, and skill development enhances the productivity of the workforce, contributing to economic growth.
Innovation and Technological Advancement: Human capital formation fosters innovation and efficient use of resources, leading to industrial and economic development.
Case Example: Countries like South Korea and Japan invested heavily in human capital post-World War II, achieving remarkable economic progress.
Was this answer helpful?
1
1
Top Questions on Money and Inflation
- The existence of purchasing power parity in an open economy implies that
(A) The purchasing power of individuals depends on inflation rate
(B) The exchange rate between two countries' currency is equal to the ratio of their price levels
(C) Law of one price holds
(D) The price levels of all countries are equal when measured in terms of the same currency
Choose the correct answer from the options given below:- CUET (PG) - 2024
- Economics
- Money and Inflation
- Match List-I with List-II:
List-I
List-II
A Money supply is exogenously given. I Post-Keynesian school B Money supply is demand driven and credit led. II Say’s law C Rational expectation. III Monetarism D Supply creates its own demand IV Neo-classical school
Choose the correct answer from the options given below- CUET (PG) - 2024
- Economics
- Money and Inflation
- If the expected rate of return from the investment projects in India be 10% per annum, and if the exchange rate becomes Rs.88 per USD from Rs.80 per USD in one year, what would be the expected amount of profit in terms of US Dollar from an investment project of 100 Million USD in India from the point of view of an investor from the USA?
- CUET (PG) - 2024
- Economics
- Money and Inflation
- What would happen to the rate of interest, in new equilibrium, if the money supply rises in the Mundell-Fleming model under the flexible exchange rate and absolutely free capital mobility, if the international interest rate remains the same?
- CUET (PG) - 2024
- Economics
- Money and Inflation
- Arrange the following rates in ascending order.
(A) Repo Rate
(B) Lending Rate
(C) Deposit Rate
(D) Reverse Repo Rate- CUET (PG) - 2024
- Economics
- Money and Inflation
View More Questions
Questions Asked in CBSE CLASS XII exam
- VX Ltd. issued 30,000, 8% debentures of ₹ 100 each at a discount of 10% redeemable at a certain rate of premium. On issue of these debentures, ‘Loss on issue of debentures account’ was debited with ₹ 4,50,000. The amount of premium on redemption of debentures was___.
- CBSE CLASS XII - 2025
- Debentures
- The coordinates of the foot of the perpendicular drawn from the point $A(-2, 3, 5)$ on the y-axis are:
- Centurian Ltd. invited applications for issuing 2,00,000 equity shares of ₹ 10 each at a premium of ₹ 20 per share. The amount was payable as follows: On Application and Allotment – ₹ 20 per share (including premium ₹ 17 per share)
On First and Final call – ₹ 10 per share (including premium ₹ 3 per share)
Applications were received for 3,00,000 equity shares and allotment was made to the applicants as follows: (i) Applicants for 2,00,000 shares were allotted 1,50,000 shares.
(ii) Applicants for 1,00,000 shares were allotted 50,000 shares.
Excess money received on application and allotment was adjusted towards sums due on first and final call. Deepali, who had applied for 2,000 shares, failed to pay the first and final call money. Her shares were subsequently forfeited. Deepali belonged to Category (i).
Pass necessary journal entries for the above transactions in the Books of Centurian Ltd.
Open Calls-in-Arrears and Calls-in-Advance account, wherever necessary.- CBSE CLASS XII - 2025
- Accounting for Share Capital
- A parallel plate capacitor is charged by an ac source. Show that the sum of conduction current (\( I_c \)) and the displacement current (\( I_d \)) has the same value at all points of the circuit.
- CBSE CLASS XII - 2025
- Capacitors and Capacitance
- If \( A \) is a square matrix of order 2 such that \( \text{det} = 4 \), then \( \text{det}(4 \, \text{adj} \, A) \) is equal to:
View More Questions