Which of the following statement/statements are true? Statement 1: Human capital formation is mainly an economic and technical process. Statement 2: Physical capital formation is partly a social process and partly a conscious decision of the possessor of the human capital.

Both the statements are true Both the statements are false Statement 1 is true and Statement 2 is false Statement 2 is true and Statement 1 is false

Both the statements are false

Physical capital formation is mainly an economic and technical process. The entrepreneur possesses knowledge to calculate the expected rates of return to a range of investments and then rationally decides which one of the investments should be made. Human capital formation is partly a social process and partly a conscious decision of the possessor of the human capital. Children are given different types of school education and health care facilities by their parents and the society.