Why is human capital so important?

Question

I don't understand it? Help please.

Answer 1

Human capital refers to the stock of productive skills and technical knowledge embodied in labor. check out this site  http://en.wikipedia.org/wiki/Human_asset...

Answer 2

Because human capital is needed to utilise the economy's resources. Land, labour, capital (both human and physical), and entrepreneurship all need human capital.

Answer 3

In a nutshell, because it has an increasing marginal productivity (the more you use it, the more efficient it is). Its introduction in a dynamic macroeconomic models allows to explain why we don't get to a "stationnary state".

It's a tricky topic, read your textbooks well and ask your teachers lots of questions, you won't find any really useful answers here...