Mobility of Capital
Regarding mobility across countries:
- Physical capital is immobile while human capital is perfectly mobile
- Physical capital is completely mobile while human capital is not perfectly mobile — Correct Answer
- Both are equally mobile
- Neither is mobile
Explanation:
Correct Answer Explanation
Physical capital is completely mobile between countries (except for trade restrictions). Human capital is not perfectly mobile as movement is restricted by nationality and culture.
Key Points:
- Physical capital formation can be built through imports.
- Human capital formation requires conscious policy formulations in consonance with society and economy.
📚 About this Topic — CH-4: HUMAN CAPITAL FORMATION IN INDIA
This multiple choice question is from CH-4: HUMAN CAPITAL FORMATION IN INDIA, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-4: HUMAN CAPITAL FORMATION IN INDIA to strengthen your preparation.
