Question

Medhya and Danish both had their own farms. Medhya invested in a few agricultural courses, learnt modern farming techniques, and trained her labourers on best practices related to soil fertility, crop management, pest control, etc. Whereas, Danish invested heavily in, by purchasing advanced farming machinery, irrigation systems, and high-quality seeds.

Do you agree that, Danish had made investment in human capital? Give valid reason in support of your answer.

Answer 1

People are the source of human capital, which is their skills and useful information. Medhya spent money on a few agricultural classes, where she learned about modern farming methods, pest control, crop management, and other topics that build human capital. Whereas when Danes buy high-tech farming equipment like HYVs, it is called real capital. So, we can say that Denmark invested in real estate.