What factors contribute to human capital formation?**Answer:** - **Education:** An educated individual has more knowledge and skills. Education imparts the necessary attitude for adopting new technologies and efficient management practices, leading to higher efficiency, productivity, income, and standard of living. - **Health:** Investment in health directly increases the supply of a healthy labour force. A healthy person is more productive. Preventive medicine, curative medicine, social medicine, and provision of clean drinking water and sanitation are various forms of health expenditures. - **On-the-job Training:** Firms provide training to workers to enhance their skills. Workers may be trained in the firm itself under supervision or sent for off-campus training. - **Migration:** It facilitates utilisation of inactive skills. People from rural areas migrate to urban areas in search of employment. The increase in earnings outweighs the costs of migration.