Consider the following statements :

Human capital formation as a concept is better explained in terms of a process which enables :

1. individuals of a country to accumulate more capital.

2. increasing the knowledge, skill levels and capacities of the people of the country.

3. accumulation of tangible wealth.

4. accumulation of intangible wealth.

Which of the statements given above is/are correct?

Correct option is C

• Human capital formation is the process of acquiring and increasing the number of persons who have the skills, education and experience which are essential for the economic and political development of a country. Thus, statement 2 is correct.

• Intangible wealth of a nation is the skilled population, human resource base, culture, arts etc. Hence, statement 4 is also correct. 

• tatement 1 and 3 are incorrect because they are part of gross capital formation (GCF) representing physical capital.

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