Consider the following statements regarding the 'Human Capital' perspective: 1. Investment in education is productive only if it enhances output. 2. Human beings are ends in themselves. 3. It focuses solely on human welfare regardless of productivity. Which of the statements given above is/are correct?

The correct option is 1 only Explanation The concept of Human Capital treats human beings as a means to an end, where the end is increased economic productivity. It views investments in education and health primarily as inputs to generate higher economic output. This is distinct from the Human Development perspective, which views human welfare and existence as valuable in their own right. Statement-wise Analysis - Statement 1 is Correct: According to the Human Capital perspective, investment in education and health is considered productive if and only if it increases the output of goods and services. It argues that an educated and healthy workforce is an asset that enhances labour productivity. - Statement 2 is Incorrect: The idea that "human beings are ends in themselves" belongs to the Human Development perspective. In contrast, the Human Capital perspective treats human beings as a means (capital) to achieve higher economic growth. - Statement 3 is Incorrect: Focusing on human welfare regardless of productivity is a core tenet of the Human Development approach. The Human Capital approach justifies investment in human beings specifically based on the return on investment in the form of increased efficiency and output. Key Takeaway Human Capital views education and health as tools to increase labour productivity (Means), whereas Human Development views them as essential rights for human well-being, regardless of their economic contribution (Ends).

NCERT Class 11 Economics — Chapter 5: Human Capital Formation in India

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Consider the following statements regarding the 'Human Capital' perspective:

Investment in education is productive only if it enhances output.
Human beings are ends in themselves.
It focuses solely on human welfare regardless of productivity.

Which of the statements given above is/are correct?

Official previous-year question

Verified 1 Aug 2026.

Options

A2 only
B1 only
C1 and 3 only
D1, 2 and 3

Did you get this right?

Solution

The correct option is

1 only

Explanation

The concept of Human Capital treats human beings as a means to an end, where the end is increased economic productivity. It views investments in education and health primarily as inputs to generate higher economic output. This is distinct from the Human Development perspective, which views human welfare and existence as valuable in their own right.

Statement-wise Analysis

Statement 1 is Correct: According to the Human Capital perspective, investment in education and health is considered productive if and only if it increases the output of goods and services. It argues that an educated and healthy workforce is an asset that enhances labour productivity.
Statement 2 is Incorrect: The idea that "human beings are ends in themselves" belongs to the Human Development perspective. In contrast, the Human Capital perspective treats human beings as a means (capital) to achieve higher economic growth.
Statement 3 is Incorrect: Focusing on human welfare regardless of productivity is a core tenet of the Human Development approach. The Human Capital approach justifies investment in human beings specifically based on the return on investment in the form of increased efficiency and output.

Key Takeaway

Human Capital views education and health as tools to increase labour productivity (Means), whereas Human Development views them as essential rights for human well-being, regardless of their economic contribution (Ends).

Your note

More from Chapter 5: Human Capital Formation in India

"A sick labourer without access to medical facilities is compelled to abstain from work and there is loss of productivity." This statement highlights the importance of which source of human capital?

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With reference to the concept of ‘Human Capital’, consider the following statements: 1. It refers solely to the physical strength of the workforce. 2. Unlike physical capital, human capital is not perfectly mobile between countries. 3. Human capital formation is not solely a conscious decision of the possessor. Which of the statements given above is/are correct?

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Consider the following statements regarding the sources of human capital formation: 1. Social medicine refers to the use of medicine for social gatherings. 2. Preventive medicine includes vaccination. 3. Provision of clean drinking water is unrelated to health expenditure. Which of the statements given above is/are correct?

easy

With reference to ‘On-the-job training’ as a source of human capital, consider the following statements: 1. It may involve training workers within the firm or sending them for off-campus training. 2. Firms incur expenses on training as a charity without expecting returns. 3. Workers are often required to work for a specific period after training. Which of the statements given above is/are correct?

medium

Consider the following statements regarding the relationship between human capital and economic growth: 1. Empirical evidence proves a clear cause-and-effect relationship from human capital growth to economic growth in developing countries. 2. Higher income causes the building of a high level of human capital and vice versa. 3. Convergence in human capital measures has not led to a convergence in per capita real income. Which of the statements given above is/are correct?

hard

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The correct option is

1 only

Explanation

Statement-wise Analysis

Statement 1 is Correct: According to the Human Capital perspective, investment in education and health is considered productive if and only if it increases the output of goods and services. It argues that an educated and healthy workforce is an asset that enhances labour productivity.
Statement 2 is Incorrect: The idea that "human beings are ends in themselves" belongs to the Human Development perspective. In contrast, the Human Capital perspective treats human beings as a means (capital) to achieve higher economic growth.
Statement 3 is Incorrect: Focusing on human welfare regardless of productivity is a core tenet of the Human Development approach. The Human Capital approach justifies investment in human beings specifically based on the return on investment in the form of increased efficiency and output.