Consider the following statements: Human capital formation as a concept is better explained in terms

Question

Consider the following statements: Human capital formation as a concept is better explained in terms of a process which enables:individuals of a country to accumulate more capital.increasing the knowledge, skill levels and capacities of the people of the country.accumulation of tangible wealth.accumulation of intangible wealth.Which of the statements given above is/are correct?

Accepted Answer

Human capital formation indicates the process of acquiring and increasing the number of persons who have the skills, education, and experience which are critical for the economic and political development of the country. Human capital formation is thus associated with investment in man and his development as a creative and productive resource. Hence, statement 1 is correct.Intangible wealth consists of factors such as the trust among people in a society, an efficient judicial system, clear property rights, effective government, and a good education system, etc. Human capital formation enables the accumulation of intangible wealth. Hence, statement 4 is correct.Source: NCERT