Separability of Capital
Physical capital is separable from its owner, whereas human capital is:
- Also separable
- Inseparable from its owner — Correct Answer
- Partially separable
- Always government-owned
Explanation:
Correct Answer Explanation
Physical capital is separable from its owner (e.g., a bus owner need not be present), whereas human capital is inseparable (a bus driver must be present).
Key Points:
- Owner of human capital must be present at the place of production.
- Only services of human capital are sold, not the capital itself.
📚 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.
