UPSC CSE Prelims
Question 18
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 ?
View correct answer and explanation
Correct answer: C
Correct Option: C
Explanation: Human-capital formation raises people’s knowledge, health, skills and productive capacity, creating intangible knowledge-based wealth. It does not simply mean savings or tangible asset accumulation.
Statement/Pair-wise Analysis:
Statement/Item 1: Incorrect - Individuals accumulating financial or physical capital is not the defining human-capital process.
Statement/Item 2: Correct - Education, training and health investment improve knowledge, skills and capacities.
Statement/Item 3: Incorrect - Machinery, buildings and other tangible wealth are physical capital, not human capital.
Statement/Item 4: Correct - Enhanced capabilities and know-how constitute intangible productive wealth.
Option-wise Analysis:
A: Incorrect - includes incorrect statement/item 1; omits correct statement/item 4.
B: Incorrect - omits correct statement/item 4.
C: Correct - includes all and only the true statements/items.
D: Incorrect - includes incorrect statement/items 1, 3; omits correct statement/item 2.