Health as Human Capital Source
Expenditure on health is an important source of human capital formation because:
- It reduces government revenue
- It directly increases the supply of healthy labour force — Correct Answer
- It decreases productivity
- It only benefits the individual
Explanation:
Correct Answer Explanation
Health expenditure directly increases the supply of healthy labour force and is thus a source of human capital formation.
Key Points:
- A sick labourer without medical access is compelled to abstain from work — causing loss of productivity.
- Health expenditure includes: preventive medicine (vaccination), curative medicine (medical intervention), social medicine (health literacy), clean drinking water, and sanitation.
📚 About this Topic — CH-4: HUMAN CAPITAL FORMATION IN INDIA
This multiple choice question is from CH-4: HUMAN CAPITAL FORMATION IN INDIA, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-4: HUMAN CAPITAL FORMATION IN INDIA to strengthen your preparation.
