ECONOMICS
HUMAN CAPITAL
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -It is TRUE, that human capital formation creates physical capital. Physical capital consists of all the means of production that go towards producing goods and services. This capital can be in the form of plants and machinery, or services.
Detailed explanation-2: -Physical capital refers to factors of production. Human capital has both social and private benefits and not physical capital.
Detailed explanation-3: -Human capital is a stock concept because we are talking about a particular point of time whereas human capital formation is a flow concept because we are adding to the stock of human capital by developing new skills, training etc.
Detailed explanation-4: -Land is not amongst the components of Human Capital.