Human capital provides social benefits as well. Which of the following statements show this?

Both 1 and 3

The correct answer is Option 4: Both 1 and 3

Human capital benefits not only the owner but also the society in general. This is called external benefit. An educated person can effectively take part in a democratic process and contribute to the socio-economic progress of a nation. A healthy person, by maintaining personal hygiene and sanitation, stops the spread of contagious diseases and epidemics. Human capital creates both private and social benefits.

• Statement 1 is true because an educated person can contribute to democratic processes and socio-economic progress, which reflects the social benefits of human capital.

• Statement 3 is also true because a healthy person who maintains personal hygiene helps prevent the spread of diseases, benefiting society at large.

Statement 2 This statement is about the difference between human capital and physical capital. It doesn't directly relate to the social benefits of human capital.