The correct option is 2 only
Explanation
Human capital formation refers to the process of acquiring and increasing the number of persons who have the skills, education, and experience critical for the economic and political development of a country. While it involves economic investment, it is inherently a social process involving interactions between individuals and their societal environment.
Statement-wise Analysis:
- Statement 1 is Incorrect: Human capital formation is considered a social process because decisions regarding investment in human capital (such as education and health) are not made in a vacuum. They are heavily influenced by peer groups, social norms, and the collective value society places on education.
- Statement 2 is Correct: Although influenced by society, human capital formation is not entirely independent of individual choice. It involves conscious decisions by individuals (or their parents) to invest resources in education and training rather than other alternatives.
- Statement 3 is Incorrect: Human capital formation is a cumulative and continuous process. The effectiveness of human capital formation at higher levels (tertiary education or professional skills) is directly related to and dependent upon the foundation of human capital formed at the school level.
Key Takeaway:
Human capital formation is a cumulative process driven by both individual economic choices and social influences, relying heavily on the foundational quality of education provided at the school level.