Human capital can be increased by incurring expenditure on which of the following options?

Improvement of Health

The correct answer is Option 3: Improvement of Health

Health is a primary source of development of human capital. Only healthy people will be willing to work and contribute to society.

Human capital can be increased by investing in education, training, and health. While improvement of technology and increase in GDP can contribute to the overall economic growth and can indirectly affect human capital, direct investments in health and education specifically enhance the skills, productivity, and well-being of the workforce.