Question : Statement 1: Human capital refers to the stock of knowledge, skills, and abilities possessed by individuals.
Statement 2: Human capital is a tangible asset that can be bought and sold in the market.
Option 1: Statement 1 is true, and statement 2 is true.
Option 2: Statement 1 is true, but statement 2 is false.
Option 3: Statement 1 is false, but statement 2 is true.
Option 4: Statement 1 is false, and statement 2 is false.
Correct Answer: Statement 1 is true, and statement 2 is true.
Solution : The correct answer is (a) Statement 1 is true, and statement 2 is true.
Statement 1 is true. Human capital refers to the stock of knowledge, skills, and abilities possessed by individuals. It encompasses the education, training, and experience that individuals acquire, which can be utilized to contribute to economic productivity and overall well-being.
Statement 2 is also true. While human capital is not a tangible asset that can be bought and sold in the same way as physical assets, it can be valued and traded in the labor market. Individuals with valuable skills and expertise can offer their human capital in exchange for wages or salaries when they provide their services to employers or clients.
Therefore, both statement 1 and statement 2 are true.
