Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Human Capital Formation in India

Question:

Machines depreciates through _________ whereas human capital depreciates through _______.

Which of the following option suits best in the above blank?

Options:

Ageing, continuous use

Continuous use, ageing

Ageing, ageing

Use, obsoleteness

Correct Answer:

Continuous use, ageing

Explanation:

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.