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.
Question : Statement 1: Human capital formation hinders economic productivity.
Statement 2: Human capital formation enhances economic productivity through the development of skilled and knowledgeable individuals.
Question : Human capital refers to:
Question : Statement 1: Human capital formation is a passive process that relies solely on individuals' efforts.
Statement 2: Human capital formation requires proactive investments and interventions from governments and institutions.
Question : Statement 1: Human capital formation is solely the responsibility of the education system.
Statement 2: Human capital formation involves the collective efforts of the education system, government, businesses, and individuals.
Question : Statement 1: Investment in human capital reduces economic growth.
Statement 2: Investment in human capital promotes economic growth and development.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile