Given below are two statements:
Statement I: The concept of human capital is the base for conceptualising physical capital.
Statement II: There are some similarities and some striking dissimilarities between human capital and physical capital.
In the light of the above statements, choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Only Statement II is correct.
Statement I: The concept of human capital is the base for conceptualising physical capital. — False. It is the other way round: physical capital is the base for conceptualising human capital.
Statement II: There are some similarities and some striking dissimilarities between human capital and physical capital. — True. For example, both depreciate, but human capital is intangible and physical capital is tangible.
NCERT (2026-27): “4.3 Sources of Human Capital … The concept of physical capital is the base for conceptualising human capital. There are some similarities between the two forms of capital; there are some striking dissimilarities as well. See Box 4.1.” “Box 4.1: Physical and Human Capital … Physical capital is tangible and can be easily sold in the market like any other commodity. Human capital is intangible; …” “… Both forms of capital depreciate with time but the nature of depreciation differs between the two. …” |