Depreciation of Capital
How does depreciation of human capital differ from physical capital?
- Human capital never depreciates
- Human capital depreciates with ageing but can be reduced through continuous investment in education and health — Correct Answer
- Both depreciate in the same way
- Only physical capital depreciates
Explanation:
Correct Answer Explanation
Human capital depreciates with ageing but can be reduced through continuous investment in education, health etc. Physical capital depreciates with continuous use and technology change makes it obsolete.
Key Points:
- Investment in education and health helps human capital cope with technology changes.
- Physical capital cannot cope with technology change the same way.
📚 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.
