Solution

Human capital
The following factors contribute to Human capital formation:
1. Expenditure on education: Education elevates the social status. It also enables an individual to enhance productivity and gain the ability to learn new technologies. An educated population helps in raising the economy of a nation to good heights.

2. Expenditure on health: Expenditure on health increases the productivity, efficiency, and efficacy of the population. A healthy person will be able to function more productively and will be considered an asset to the nation.
3. On-job-training: Training helps in acquiring a skill in a better way and is one of the most efficient methods to increase productivity. Training sets the ground for further learning and helps one become skilled.

4. Migration: Migration refers to the mass movement of people from underdeveloped or developing nations to countries that are developed. It helps utilise the skills of the individual and helps in perfecting it. These skills can be transferred to the underdeveloped country which will help in the growth of that nation.

5. Information: Information related to the extent of availability of admissions, jobs, and salaries play a vital role in determining human capital. Proper information helps attract the best students as per their field of interest, in the same way, the availability of medical information helps keep one safe. Therefore spreading of information is critical for the effectiveness of human capital.