Explain the main sources of human capital formation.

**Answer:** - i. **Investment in education:** People invest with the objective of increasing future income. - ii. **Investment in health:** Healthy people contribute more productively. - iii. **On-the-job training:** Workers may be trained under a skilled expert or sent for off-campus training. - iv. **Migration:** Expenditure on migration is a source of human capital formation as people migrate for better job opportunities.