The correct option is (c) 2 and 3 only.
Explanation
Human resources refer to the quantity (population size) and quality (skills, health, and knowledge) of people in a country. Unlike other resources, human resources are active agents that can utilize land and capital to generate economic value.
Statement 1 is Incorrect: Education and health play a critical role in transforming a population into a valuable resource. Investment in human capital through education, training, and medical care yields a return just like investment in physical capital. A healthy and educated population is more productive and contributes significantly to economic growth.
Statement 2 is Correct: People are considered the most important resource of a nation. It is people with their demands and abilities that turn nature's gifts into resources. Without human intervention, knowledge, and technology, natural substances would remain neutral stuff rather than resources.
Statement 3 is Correct: Human Resource Development (HRD) specifically refers to the process of improving the quality of people's skills. By enhancing skills, individuals become capable of creating more resources and adding greater value to the economy.
Key Takeaway: Human capital formation is driven by investments in education, health, and skill training, making the population the most vital asset for national development.