Human Capital Definition
Human capital refers to:
- Physical machinery used in production
- Stock of skill and productive knowledge embodied in people — Correct Answer
- Natural resources of a country
- Financial assets of individuals
Explanation:
Correct Answer Explanation
Human capital refers to the stock of skill and productive knowledge embodied in people through education, training, and health.
Key Points:
- Just as physical resources (land) are turned into physical capital (factories), human resources (nurses, farmers, students) are turned into human capital (engineers, doctors).
- Requires investment in education, health, training.
- Represents enhanced labour productivity.
Why Other Options Are Wrong
- A: This describes physical capital, not human capital.
- C: Natural resources are not human capital.
- D: Financial assets are different from human capital.
📚 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.
