The correct option is (a).
Explanation
Human Resource refers to the population of a country viewed in terms of their existing productive skills and abilities. When investment is made in the form of education, training, and medical care, the population transforms into Human Capital, which is an essential factor of production.
Statement-wise Analysis
- Statement 1 is Correct: 'Human Resource' represents the positive side of a large population. It focuses on the ability of the population to contribute to the creation of the Gross National Product (GNP), rather than viewing the population solely as a burden or liability requiring food, shelter, and clothing.
- Statement 2 is Incorrect: A large population is often considered a liability only until it is invested in. Once investments are made in education, training, and healthcare, the population transforms into an asset (Human Capital). Therefore, it does not remain a liability after such investment; it becomes a productive asset that yields returns similar to physical capital.
- Statement 3 is Incorrect: Human capital is generally considered superior to other resources like land and physical capital. This is because human resources can make use of land and capital to generate output. Land and physical capital are passive resources; they cannot become useful or produce anything on their own without human intervention.
Key Takeaway: Human Resource is the stock of skill and productive knowledge embodied in a population. Unlike physical capital, it is an active factor of production capable of utilizing other resources.