Consider the following statements regarding the 'Human Development' approach: 1. It argues that human welfare should be increased through investments in education and health. 2. It considers education and health valuable only if they result in higher labour productivity. 3. It considers human welfare to be the ultimate goal of all economic activities. Which of the statements given above is/are correct?

Correct Option The correct option is 1 and 3 only. Explanation The Human Development approach, associated with economists Mahbub ul Haq and Amartya Sen, shifts the focus of development economics from income generation to the enrichment of human life. It is distinct from the Human Capital approach, which views human beings primarily as inputs for economic productivity. Statement-wise Analysis - Statement 1 is Correct: The Human Development approach argues that human welfare must be enhanced through direct investments in social sectors, specifically education and health. These investments are essential to build human capabilities and enlarge the choices available to individuals. - Statement 2 is Incorrect: This statement describes the Human Capital approach, not the Human Development approach. The Human Capital perspective values education and health only insofar as they increase labour productivity. In contrast, the Human Development approach considers education and health to be intrinsically valuable for human well-being, regardless of their impact on economic productivity. - Statement 3 is Correct: A fundamental principle of the Human Development approach is that human beings are ends in themselves. Consequently, human welfare is considered the ultimate goal of all economic activities, rather than viewing people merely as a means to achieve economic growth. Key Takeaway: The critical distinction lies in the valuation of human life: the Human Capital approach views humans as a means to higher productivity, while the Human Development approach views human welfare and capability expansion as the ultimate end of development.

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

mcqmedium

Consider the following statements regarding the 'Human Development' approach:

It argues that human welfare should be increased through investments in education and health.
It considers education and health valuable only if they result in higher labour productivity.
It considers human welfare to be the ultimate goal of all economic activities.

Which of the statements given above is/are correct?

Official previous-year question

Verified 1 Aug 2026.

Options

A1, 2 and 3
B1 and 3 only
C1 and 2 only
D2 only

Did you get this right?

Solution

Correct Option

The correct option is 1 and 3 only.

Explanation

The Human Development approach, associated with economists Mahbub ul Haq and Amartya Sen, shifts the focus of development economics from income generation to the enrichment of human life. It is distinct from the Human Capital approach, which views human beings primarily as inputs for economic productivity.

Statement-wise Analysis

Statement 1 is Correct: The Human Development approach argues that human welfare must be enhanced through direct investments in social sectors, specifically education and health. These investments are essential to build human capabilities and enlarge the choices available to individuals.
Statement 2 is Incorrect: This statement describes the Human Capital approach, not the Human Development approach. The Human Capital perspective values education and health only insofar as they increase labour productivity. In contrast, the Human Development approach considers education and health to be intrinsically valuable for human well-being, regardless of their impact on economic productivity.
Statement 3 is Correct: A fundamental principle of the Human Development approach is that human beings are ends in themselves. Consequently, human welfare is considered the ultimate goal of all economic activities, rather than viewing people merely as a means to achieve economic growth.

Key Takeaway: The critical distinction lies in the valuation of human life: the Human Capital approach views humans as a means to higher productivity, while the Human Development approach views human welfare and capability expansion as the ultimate end of development.

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?

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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?

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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?

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Correct Option

The correct option is 1 and 3 only.

Explanation

Statement-wise Analysis

Statement 1 is Correct: The Human Development approach argues that human welfare must be enhanced through direct investments in social sectors, specifically education and health. These investments are essential to build human capabilities and enlarge the choices available to individuals.
Statement 2 is Incorrect: This statement describes the Human Capital approach, not the Human Development approach. The Human Capital perspective values education and health only insofar as they increase labour productivity. In contrast, the Human Development approach considers education and health to be intrinsically valuable for human well-being, regardless of their impact on economic productivity.
Statement 3 is Correct: A fundamental principle of the Human Development approach is that human beings are ends in themselves. Consequently, human welfare is considered the ultimate goal of all economic activities, rather than viewing people merely as a means to achieve economic growth.