The correct option is (c).
Explanation
Human resources refer to the size (quantity) and abilities (mental and physical) of a population. People are considered the ultimate resource because it is their knowledge, skills, and technology that transform natural substances into usable resources.
Statement-wise Analysis:
- Statement 1 is Incorrect: Human resources refer to the people of a country and their productive skills, not to machinery or physical capital. Machinery constitutes physical capital, whereas human beings constitute human capital.
- Statement 2 is Correct: Improving the quality of people’s skills so that they are able to create more resources is known as Human Resource Development. This is typically achieved through investments in education, vocational training, and healthcare.
- Statement 3 is Correct: Human beings interact with nature through technology and create institutions to accelerate economic development. Natural substances become resources only when human beings utilize their intelligence and technology to transform them into utility.
Key Takeaway:
Human resources differ from other resources like land and physical capital because humans can make use of other resources; land and capital cannot become useful on their own.