The correct option is 1 only
Explanation
The concepts of Human Capital and Human Development represent two distinct perspectives on the role of human beings in an economy. The Human Capital perspective treats human beings as a means to an end, focusing on their ability to generate economic value through productivity. In contrast, the Human Development perspective views human beings as ends in themselves, emphasizing human welfare and the expansion of choices and capabilities.
Statement-wise Analysis
- Statement 1 is Correct: According to the Human Capital perspective, investment in education and health is seen primarily as a means to increase labour productivity. Human beings are viewed as assets (capital) that contribute to the production of goods and services.
- Statement 2 is Incorrect: The Human Development perspective considers education and health to be integral to human well-being. It argues that literacy and a healthy life are valuable in themselves because they enable individuals to make choices they value, regardless of their contribution to economic productivity. They are certainly not considered "irrelevant."
- Statement 3 is Incorrect: In the Human Capital perspective, investment in education and health is considered unproductive if it does not result in an increased output of goods and services. It is the Human Development perspective which argues that human welfare should be increased through investments in education and health even if such investments do not result in higher labour productivity.
Key Takeaway
Human Capital focuses on economic efficiency and treats humans as inputs for productivity (Means), whereas Human Development focuses on human welfare, rights, and freedom of choice, treating human life as valuable in itself (Ends).