Q.14:- Explain how investment in education stimulates economic growth.
Education is an important source of human capital formation. Investment in education stimulates economic development in the following ways:
- Raises production. Knowledgeable and skilled workers can make better use of resources at their disposal. It will increase production in the economy. An educated and trained person can apply his knowledge and skill at farm, factory and office to increase production.
- Raises efficiency and productivity. Investment in education increases efficiency and productivity, and hence yields higher income to the people.
- Brings positive changes in outlook and attitudes. Knowledgeable and skilled people have modem outlook and attitudes, that they make rational choice in respect of places and jobs.
- Improves quality of life. Education improves quality of life as it provides better job, high income and improves health. It results in better standard of living.