Consider the following statements: Human capital formation as a concept is better explained in terms of a process, which enables 1. individuals of a country to accumulate more capital. 2. increasing the knowledge, skill levels and capacities of the people of the country. 3. accumulation of tangible wealth. 4. accumulation of intangible wealth. Which of the statements given above is/are correct?

QUESTION

Hard

Economy

Prelims 2018

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?

Select an option to attempt

Explanation

Human capital formation refers to the process of increasing the stock of knowledge, skills, and experiences that people in a country possess. This intangible wealth is what makes a workforce productive and adaptable. Therefore, statement 2 and 4 are correct.

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