UPSC Prelims 2018 · GS Paper 1 · Q49

Economy

Medium · Human Capital Formation vs Physical Capital

Consider the following developments in an economy:

1. A steel plant increases its installed production capacity by importing new machinery.

2. The workforce of a firm undergoes training that raises its average skill level.

3. A telecom company lays fresh optical fibre cable across several districts.

4. Public health spending leads to a healthier, more productive workforce over time.

Which of the above represent instances of human capital formation?