Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Human Capital Formation in India

Question:
Two friends were discussing factors affecting economic growth. Mayanka said that “Education is important for economic growth.” “Health is also an important factor for economic growth.”, added Shyamali. A third student named Goli, who was listening to them, interrupted and said,” No, health is not as important.” What do you think?
Options:
Shyamali is right
Goli is right
Mayanka is right
Both Mayanka and Shyamali are right
Correct Answer:
Both Mayanka and Shyamali are right
Explanation:
Both Mayanka and Shyamali are right. The labour skill of an educated person is more than that of an uneducated person and that the former generates more income than the latter. Educated person, thereby, contributes more to economic growth. If a healthy person could provide uninterrupted labour supply for a longer period of time, then health is also an important factor for economic growth. If a person is educated but not healthy, he will not be able to work and hence not be able to generate income.