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ECONOMICS
Class-XII
CHAPTER 3
Human Capital Formation
(Module-32)
TOPIC:
• Introduction
• Physical Capital and Human Capital
• Meaning of Human Capital Formation
• Sources of Human Capital Formation
• Human Capital and Economic Growth
Short Notes
Physical Capital –It includes all those inputs which are required for
further production. Eg Plants, Machinery etc
Human Capital –It refers to stock of skill ,ability ,expertise ,education
and knowledge, embodied in the people.
• It is needed to make effective use of physical capital.
Meaning of Human Capital Formation- It refers to development of
abilities and skills among the population of the country.