The correct answer is option 2: Human capital is intangible and can be sold in the market
Here’s why:
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Human capital benefits not only the owner but also society in general: This is true. Investments in human capital (like education and training) enhance individual skills and contribute to societal well-being through increased productivity and economic growth.
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Human capital is needed to make effective use of physical capital: This is true. Skilled and knowledgeable individuals are required to effectively utilize physical capital (machinery, equipment, etc.) and enhance productivity.
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Human capital formation is to be done through conscious policy formulation: This is true. Developing human capital involves strategic planning and policies related to education, health, and training.
However:
- Human capital is intangible and can be sold in the market: This is incorrect. While human capital (skills, knowledge, experience) is intangible, it cannot be sold directly in the market. Instead, individuals offer their human capital through labor and services, which can be compensated through wages or salaries.
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