Both the forms of capital formation- physical and human are COMPLETELY the outcomes of conscious investment decisions.

Which of the following option is true in regards to the above statement?

The statement is partially true

The ownership of physical capital is the outcome of the conscious decision of the owner — the physical capital formation is mainly an economic and technical process. The entrepreneur possesses knowledge to calculate the expected rates of return to a range of investments and then rationally decides which one of the investments should be made. A substantial part of the human capital formation takes place in one’s life when she/he is unable to decide whether it would maximise her/his earnings. Children are given different types of school education and health care facilities by their parents and the society. Human capital formation is partly a social process and partly a conscious decision of the possessor of the human capital.