Final answer:
An economy can increase Human Capital by improving education and skill development, and by investing in a healthy workforce through better healthcare. These investments contribute to creating a skilled, knowledgeable, and productive labor force that drives economic growth.
Step-by-step explanation:
An economy can increase Human Capital primarily through two pivotal strategies: improving education and skill development programs, and investing in healthcare to promote a healthy workforce. Both strategies are essential for enhancing a country's economic growth and productivity. By investing in education, governments and private entities can ensure that individuals have the necessary skills and knowledge to contribute effectively to the workforce. Enhanced educational systems encourage apprenticeships and vocational training, leading to job-relevant skills that can pay off economically. Similarly, a focus on healthcare ensures a robust and efficient workforce, as good health is a prerequisite for maximizing an individual's work capacity and productivity.
Countries with a focus on these areas often have a highly skilled and educated workforce, that drives economic growth. Public Investment in Human Capital is essential and is often facilitated by government policies that prioritize education and healthcare. Such investments are particularly crucial for low-income nations to increase their productivity and growth. However, questions remain, especially in developed economies like the United States, about the efficiency and effectiveness of additional governmental spending on education.