Explanation:

Statement 1: Human capital can be increased in two important ways. One that we increase the population and thus increase the labour force and second if the population is fixed or declining, increase expenditure on human resources. Health expenditure directly increases the supply of healthy labour force and is, thus, a source of human capital formation. Digital literacy builds IT skills, increases productivity and efficiency oflabour and digital information is necessary to make decisions regarding investments in human capital as well as for efficient utilization of the acquired human capital stock.