Investment in Human Capital is Expenditure on?

Answer: Spending on education, training, and health care constitutes an investment in human capital.

According to some studies, human capital investment has a positive impact on the economy. The following is an explanation of how human capital formation contributes to economic growth:

An increase in the Productivity of the Workforce Investing in human capital, such as education, health care, and other forms of personal development, helps workers become more productive because they are better equipped to do their jobs. As a result, resources like raw materials and capital are put to good use. Economic growth accelerates as output rises at a faster rate as a result of increased productivity.