A person from a well-off family after completing MBA from a foreign university gets a well paid job through an influential relative. What kind of capital does the person have?
(A) Physical Capital
(B) Social Capital
(C) Administrative Capital
(D) Cultural Capital
(E) Economic Capital
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (B), (D) And (E) Only
(A) Physical Capital Incorrect. Physical capital is a term of economics for man-made goods used in production, such as machines, tools and buildings. The person in the question owns no such thing that the case mentions, and it is not one of the three forms of capital that make up social resources.
(B) Social Capital Correct. Social capital is the network of contacts and social associations a person has. Getting a well-paid job through an influential relative is social capital at work: someone with influential relatives and friends may, through advice, recommendations or information, manage to get a well-paid job.
(C) Administrative Capital Incorrect. There is no such form of capital. The three forms are economic, cultural and social.
(D) Cultural Capital Correct. Cultural capital is educational qualifications and status. The MBA from a foreign university is this capital, acquired because the family could pay for it.
(E) Economic Capital Correct. Economic capital is material assets and income. Coming from a well-off family gives the person this capital, and it is what paid for the costly education. The case shows how the three forms overlap and one can be converted into another.
Note: The concept in (A), ‘physical capital’, is not in NCERT (2025-26); explained here for the benefit of the students.
NCERT (2025-26): “Social Inequality … In every society, some people have a greater share of valued resources – money, property, education, health, and power – than others. These social resources can be divided into three forms of capital – economic capital in the form of material assets and income; cultural capital such as educational qualifications and status; and social capital in the form of networks of contacts and social associations (Bourdieu 1986). Often, these three forms of capital overlap and one can be converted into the other. For example, a person from a well-off family (economic capital) can afford expensive higher education, and so can acquire cultural or educational capital. Someone with influential relatives and friends (social capital) may – through access to good advice, recommendations or information – manage to get a well-paid job.…” |