human capital

Examples of human capital in the following topics:

• Changing Worker Productivity

  • In economics and long-run growth, worker productivity is influenced directly by fixed capital, human capital, physical capital, and technology.
  • A human resource is transformed into human capital with the effective inputs of education, health, and moral values.
  • Human capital and increased worker productivity are critical because they are different from the tangible monetary capital or revenue.
  • Human capital grows cumulatively over a long period of time.
  • Examine the role of human capital in production and economic growth

• Improving Education and Health Outcomes

  • A country can impact its long-term growth by affecting human capital through education and healthcare investments.
  • Human capital requires investment, but also provides economic returns.
  • As education increases human capital increases, countries will also expect to see higher productivity, wages, and the GDP .
  • Although health is not directly related to human capital, it is obvious that without health and life human capital will be impacted negatively.
  • Health policies can have positive long-run effects on not only human capital, but also economic growth as a whole.

• Development of Human Resources

  • "Human capital" is sometimes used synonymously with human resources, although human capital typically refers to a more narrow view (i.e., the knowledge the individuals embody and can contribute to an organization).
  • Human resources development (HRD) as a theory is a framework for the expansion of human capital within an organization through the development of both the organization and the individual to achieve performance improvement.
  • Training and development (TD), the development of human expertise for the purpose of improving performance
  • Organization development (OD), empowering the organization to take advantage of its human resource capital.
  • TD alone can leave an organization unable to tap into the increase in human, knowledge, or talent capital.

• Aggregate Production

  • The aggregate production function examines how the productivity depends on the quantities of physical capital per worker and human capital per worker.
  • The aggregate production function examines how productivity, or real GDP per worker, depends on the quantities of physical capital per worker and human capital per worker.
  • Aggregate production functions create an estimated framework to determine how much of an economy's growth is related to changes in capital or changes in technology.

• Defining Capital

  • Physical Capital: capital that must be produced by human labor before it can become a factor of production (also referred to as manufactured capital).
  • Natural Capital is capital that occurs naturally in the environment and is protected because it supports human life.
  • It is the general concept of inter-relationships between humans have money-like value that motivates actions.
  • Human Capital is capital that includes social, instructional, and individual human talent combined together.
  • As a term, it is used to define balanced growth where the goal is to improve human capital and economic capital equally.

• Other Factors of Production

  • There are three factors of production that are required to produce economic output: land, labor, and capital.
  • Labor:which includes all human effort used in production as well as the necessary technical and marketing expertise; and
  • Capital: which are the human-made goods used in the production of other goods, such as machinery and buildings .
  • In accounting and other disciplines, the phrase "capital" can also refer to cash that have been invested in a business.
  • The classical economists also employed the word "capital" in reference to money.

• The Death Penality

  • Capital punishment is often opposed on the grounds that innocent people will inevitably be executed.
  • Crimes that can result in a death penalty are known as "capital crimes" or "capital offenses. " Capital punishment has in the past been practiced by most societies.
  • In many countries that use the death penalty, drug trafficking is also a capital offense.
  • In China, human trafficking and serious cases of corruption are punished by the death penalty.
  • Abolitionists believe capital punishment is the worst violation of human rights, because the right to life is the most important, and judicial execution violates it without necessity and inflicts to the condemned to a psychological torture.

• The Marxist Critique of Capitalism

  • Capitalism has been the subject of criticism from many perspectives during its history.
  • Criticisms range from people who disagree with the principles of capitalism in its entirety, to those who disagree with particular outcomes of capitalism.
  • In this sense they seek to abolish capital.
  • Private ownership over the means of production and distribution is seen as creating a dependence of non-owning classes on the ruling class, and ultimately as a source of restriction of human freedom.
  • Capitalism is seen as just one stage in the evolution of the economic system.

• Inputs and Outputs of the Function

  • Capital refers to the material objects necessary for production.
  • Machinery, factory space, and tools are all types of capital.
  • Although in reality a firm may own the capital that it uses, economists typically refer to the ongoing cost of employing capital as the rental rate because the opportunity cost of employing capital is the income that a firm could receive by renting it out.
  • Thus, the price of capital is the rental rate.
  • Labor refers to the human work that goes into production.

• Production Inputs and Process

  • Labor, capital, and land are the three necessary inputs for any production process.
  • Production processes require three inputs: land, capital and labor.
  • Capital, otherwise known as capital assets, are manufactured goods that are used in production of goods or services.
  • For a caveman, a stick or a stone would have been considered capital.
  • Labor is a measure of the work done by human beings to create a manufactured output.