The correct option is 2 and 3 only.
Explanation
Human Capital refers to the stock of skill, ability, expertise, education, and knowledge embodied in the people of a nation. It is an intangible asset that enhances the productivity of the workforce and drives economic growth.
- Statement 1 is Incorrect: Human capital does not refer solely to physical strength. It primarily encompasses intangible assets such as education, technical skills, health, and professional experience. While physical health is a component, the concept goes beyond mere physical strength to include intellectual and cognitive capabilities.
- Statement 2 is Correct: Unlike physical capital (such as machinery or financial assets), which can be transported across borders with relative ease, human capital is not perfectly mobile between countries. Its movement is restricted by barriers such as nationality, culture, language, and immigration laws.
- Statement 3 is Correct: Human capital formation is not solely a conscious decision of the possessor. While individuals make choices regarding higher education or training, foundational aspects such as primary education and healthcare are often decided by parents or society. Additionally, government policies and social infrastructure play a critical role in determining access to human capital formation.
Key Takeaway: Human capital is the aggregate of skills, education, and health in a population. It differs from physical capital as it is inseparable from its owner, less mobile internationally, and relies on both individual choices and societal investments for its formation.