Q49.
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?
Answer
C
Explanation
Human capital formation involves the process of acquiring and increasing persons who have skills, education and experience. Statement 2 is correct: It involves increasing knowledge, skill levels and capacities. Statement 4 is correct: Intangible wealth includes trust, efficient judicial system, clear property rights, effective government, good education system - Human capital formation enables accumulation of these intangible forms of wealth.