Question : What is the role of education in human capital formation?
Option 1: It increases income inequality.
Option 2: It reduces the productivity of the workforce.
Option 3: It enhances the knowledge and skills of individuals.
Option 4: It hinders economic growth.
Correct Answer: It enhances the knowledge and skills of individuals.
Solution : The correct answer is (c) It enhances the knowledge and skills of individuals.
Education plays a vital role in developing and improving human capital, which refers to the knowledge, skills, abilities, and attributes that individuals possess and contribute to their productivity and potential economic contribution.
Through education, individuals acquire knowledge, learn new skills, develop critical thinking abilities, and gain a broader understanding of the world. Education equips individuals with the necessary tools to adapt to changing circumstances, engage in lifelong learning, and contribute effectively to the workforce and society.
Investments in education can lead to several benefits for individuals and societies. It enhances employability, increases productivity, and improves earning potential for individuals. Education also contributes to social mobility, reduces poverty, promotes social inclusion, and fosters economic growth and development.
