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Why is continuous investment in human capital essential?

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Question

Why is continuous investment in human capital essential?

Options

  • Because skilled professionals help create more human capital

  • Because physical capital can fully substitute for skilled people

  • Because education lowers the productivity of labour

  • Because trained people stop participating in the workforce

MCQ
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Solution

Skilled professionals themselves help create more human capital by educating and training others. This makes continuous investment in human capital essential to keep the cycle running.

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