1) Human Capital:

Consider two sources of human capital accumulationeducation and on-the-job trainingand

think about what factors might be conducive to each. In the education sphere, keep in mind the

distinction between primary and higher education. Discuss what you might expect in the following

societies. 5+ 5 marks

(i) Societies in which individuals typically look after their ageing parents, compared to societies

in which parents do not expect economic benefits from their children.

(ii) Societies in which education is supplied by the free market, compared to societies in which the

state is responsible for the provision of education.