Question

In the question given below, there are two statements marked as Assertion (A) and
Reason (R). Read the statements and chose the correct option:
Assertion (A): Human capital is superior to other resources.
Reason (R): Other resources can be developed only by human beings with their skills
and knowledge.
a. Both A and R are true and R is the correct explanation of A.
b. Both A and R are true but R is not the correct explanation of A.
C. A is correct but R is wrong
d. A is wrong but R is correct​

Answer 1

Assertion (A): Human capital is superior to other resources.

Reason (R): Other resources can be developed only by human beings with their skills

a. Both A and R are true and R is the correct explanation of A.

• Human Capital includes health, knowledge and skills that are invested by the people to do productive work in an efficient manner
• Human capital is accumulated their whole lives and enables them to know their potential as beneficial members of society.
• Human Capital is used to operate machinery and technologies to boost the production of goods and services in an economy.
• Human Capital is used in financial resources like shares, bonds debentures etc.
• Human Capital for managing and planning other resources of the organisation to achieve organisational goals.
• Human Capital involves labour and employers. Economic growth takes place primarily due to two factors labour productivity growth and employment growth.
• Human Capital Formation means the population attaining knowledge and using it effectively for their development.
• Human Capital formation is very important to overcome poverty in a nation and to improve economic growth through an increase in national income.

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Answer 2

Answer:

a. Both A and R are true and R is the correct explanation of A.

Explanation:

Human resource is different from other resources like land and physical capital in the following ways:

1. From economic development perspective, human resources exhibit multiple importances i.e. at one end human resource act both producers as well as consumers.
2. Human resource makes use of other resources like land and physical capital to produce an output.
3. Human resources are considered superior to other resources as it is not confined to one region or place. It can spread to other places and diversify.