Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Human Capital Formation in India

Question:
Which of the following does not qualify as a benefit of human capital formation?
Options:
Increases technical knowledge
Increases business size
Increases production cost
Alters social outlooks
Correct Answer:
Increases production cost
Explanation:
Human capital formation does not increase production costs. Rather knowledgeable and skilled workers can better use resources at their disposal. It increases production in the economy. This raises efficiency and productivity.