Concepts and Contributions of Human Capital Flashcards
What is human capital?
Human capital refers to the stock of skills, knowledge, health, and attributes that enhance productivity and economic development.
Which economists popularized the concept of human capital?
Gary Becker and Theodore Schultz.
Why is human capital considered analogous to physical capital?
Investments in education, health, and skills yield returns similar to investments in physical capital.
Name three key aspects of human capital.
Education, health, and skills/training.
How does education enhance human capital?
It improves skills and knowledge, increasing individual productivity and income.
Why is health important for human capital?
A healthy workforce is more productive, innovative, and efficient.
How do skills and training contribute to economic development?
They foster adaptability and efficiency in a changing economy.
What role does human capital play in economic growth?
It boosts productivity, drives innovation, reduces poverty, and supports demographic transition.
Name two countries that have experienced rapid growth due to human capital investments.
South Korea and Singapore.
How does human capital reduce poverty?
By enhancing employment opportunities and increasing earning capacities.
