Depreciation of human capital can be reduced by which of the followin…

The correct answer is option 3: In the case of human capital, depreciation takes place with ageing and hence cannot be reduced.

Both forms of capital i.e. Physical and Human, depreciate with time but the nature of depreciation differs between the two. Continuous use of machine leads to depreciation and change of technology makes a machine obsolete. In the case of human capital, depreciation takes place with ageing but can be reduced, to a large extent, through continuous investment in education, health, etc. This investment also facilitates the human capital to cope with change in technology which is not the case with physical capital.