Capital formation and economic growth are closely linked as capital formation provides the resources for investment and expansion, which can drive economic growth.
Capital formation human refers to the process of investing in education, training, and skill development to enhance human capital and improve economic productivity.
When capital flow increases, it can stimulate economic growth by providing funds for investment and creating new opportunities for businesses and individuals.
The situation that best illustrates the process of capital formation is when an individual saves money and invests it in a company or project to generate income or appreciation in value.