Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Human Capital Formation in India

Question:
Which of the following cannot be considered as a source for transforming human capital?
Options:
Migration expenditure in search of better employment opportunities
Expenditure for on the job training to increase productivity
Expenditure incurred on building machines and factories
All of the above
Correct Answer:
Expenditure incurred on building machines and factories
Explanation:
Expenditure on building factories and machines leads to formation of physical capital and not human capital. Human capital can be formed through expenditure on education, health , migration, etc.