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Why is investment in human capital important for a nation’s development?

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Question

Why is investment in human capital important for a nation’s development?

Options

  • It reduces spending on machines

  • It decreases the need for natural resources

  • It increases productivity and future income

  • It focuses only on population growth

MCQ
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Solution

It increases productivity and future income

Explanation:

Investing in the skills, education, and health of people increases their productivity and future earning potential.​

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