Depreciation of machines _______ be reduced whereas depreciation of human capital ______ be reduced.
Which of the following option suits best in the above blank?
Answer & explanation
Correct answer: option 2
Depreciation of machines cannot be reduced whereas depreciation of human capital can be reduced. In the case of human capital, depreciation takes place with ageing but can be reduced, to a large extent, through continuous investment in education, health, etc.