Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Human Capital Formation in India

Question:

A healthy person, by maintaining personal hygiene and sanitation, stops the spread of contagious diseases and epidemics. This points to which difference between human and physical capital?

Options:

Nature of benefits

Nature of depreciation

Nature of Mobility

Nature of Tangibility

Correct Answer:

Nature of benefits

Explanation:

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, whereas physical capital creates only private benefit. That is, benefits from a capital good flow to those who pay the price for the product and services produced by it.