Question : Human capital refers to:
Option 1: Physical capital used in production
Option 2: Financial capital used in production
Option 3: Skills, knowledge, and education of the workforce
Option 4: Natural resources used in production
Correct Answer: Skills, knowledge, and education of the workforce
Solution : The correct answer is (c) Skills, knowledge, and education of the workforce.
Human capital refers to the skills, knowledge, education, training, and other attributes possessed by individuals that contribute to their productivity and ability to generate economic value. It represents the intangible qualities and capabilities of individuals that can be utilized in the production process.
Investments in human capital, such as education and training programs, contribute to the development and enhancement of individuals' skills and knowledge. A well-educated and skilled workforce is considered a valuable asset for economic growth and productivity improvements.
