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in Economics by (47.3k points)

Why do people spend money to acquire information?

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The on-the-job-training helps human capital formation in following ways:

1. The employees cum trainees get ample time for learn new methods of production under the supervision of skilled workers.

2. The employees get extra technical skill without incurring any expenditure.

3. The employees will get adjusted to technical advancement and get promotion in their jobs.

4. It helps in undertaking innovations.

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