Causality Direction
The causality between human capital and economic growth:
- Flows only from human capital to economic growth
- Flows only from economic growth to human capital
- Flows in either direction — Correct Answer
- Does not exist at all
Explanation:
Correct Answer Explanation
The causality flows in either direction — higher income causes building of high level of human capital and vice versa.
Key Points:
- Empirical evidence is rather nebulous due to measurement problems.
- Human capital growth in developing countries has been faster but per capita real income growth has not been that fast.
📚 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.
