UPSC Previous Year Question | Prelims GS | 2018

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?

  1. 1 and 2
  2. 2 only
  3. 2 and 4
  4. 1, 3 and 4

Answer

Correct Answer

2 and 4

Explanation

Human capital formation means raising the knowledge, skills and capacities of people (statement 2), which is an accumulation of intangible wealth (statement 4), not of physical or tangible capital.

Topics: economy, growth and development, human capital, human capital formation