Human Capital
Definition
Human capital refers to the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.
Analogy
Think of human capital as your smartphone. Just as your phone has different apps (skills), storage capacity (knowledge), and updates (experience) that make it more valuable and efficient, so does human capital enhance productivity in an economy.
Related terms
Education: The process of receiving systematic instruction, especially at a school or university. This is like downloading new apps on your phone - you're adding new skills.
Work Experience: The familiarity with tasks and responsibilities gained from practical activities performed in certain jobs. It's akin to updating your apps - you're improving what you already have.
Productivity: A measure of efficiency of a person completing a task. It's like how fast your phone operates without glitches - it shows how well everything works together.
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