Human Capital

It is the skills and knowledge possed by a population which provides economic value of country

 

Human Development

It is the process of improving life of people

It aims at making people life better regardless of economic benefit derived

It is based on idea that education and health are intergral to a human well being

Only when a person is able to read and write, they will be able to make other choices when they value

Example-Human Capital and Human Development - Teachoo.JPG

Example 2-Human Capital and Human Development - Teachoo.JPG

 

Q5

How is human development a broader term as compared to human capital?

Ans

Human capital only focusses on the economic part, while human development focusses on the overall development

Therefore, human development is a broader concept compared to human capital

20,21

Difference

Difference Human Capital and Development - Teachoo.JPG

Investement Human Capital leads to Human Development - Teachoo.JPG

NCERT Questions

Q4

"Bring out the differences between human capital and human

development.

View Answer

MCQ Other Books

Q1

In the following questions, select the correct answers:

1 Which is not a point of difference between Human Capital and Human

Development?

A Human Capital is an economic concept, human development is a social concept

B Investment in human capital leads to human development, investment in human development may not lead to human capital

 

C Human capital considers humans as ends themselves, human development considers humans as means to an end.

 

D Human Capital is a narrow concept, human development is a broad concept

View Answer

 

 

 

 

 

 

 

Q.2

Human Development is:

A An end

B A means

C Both (A) and (B)

D None of the above

View Answer

 

  1. Class 12 NCERT
  2. Indian Economic Development

Transcript

Example-Human Capital and Human Development Mrs Kamla Age 80 Years Never gone to School Wants to Study so that she can write her own name & read newspapers Suppose an 80-Year-old wants to study and go to School Should govt spend on her free education? No There is no Economic Benefit of giving her education She won't be able to do job Yes She will be able to Read and write, It will improve her life HUMAN CAPITAL It is skills and knowledge which provide economic value HUMAN DEVELOPMENT It is the process of improving life of people without considering economic value Example 2-Human Capital and Human Development Should Vaccines be given to Old People for Covid No There is no Economic Benefit They are going to die anyways in some years This is Concept of Human Capital HUMAN CAPITAL It is skills and knowledge which provide economic value Yes It is our social responsibility Everyone has right to live This is Concept of Human Development HUMAN DEVELOPMENT It is the process of improving life of people without considering economic value Relation between Human Capital & Human Development Investment in Education and Health Increases Economic Value Does not Increases Economic Value Example Education for Young Example Education for Senior Citizens This is Human Capital This is not Human Capital But Both these are Human Development Investment in Human Capital leads to Human Development Human Capital means More Schools/Colleges/Hospitals For working Population(Young) Better Skills/Health of People Improvement in life of people Will lead to Human Development Human Development may not lead to Human Capital Human Development means More Schools/Colleges/Hospitals For whole Population Young People Old People Increase their skills And They contribute to Economic Growth Increase their skills But They do not contribute to economic Growth Create Human Capital Does not create Human Capital Difference Human Capital and Development Education for Young Human Capital It is skills and knowledge which provide economic value It is economic concept If investment in health and education do not increase economic value It is not human capital Increase in Human Capital leads to Human Development Narrow Concept (Focus only on economic Part) Human Development It is the process of improving life of people without considering economic value It is social concept If investment in health and education do not increase economic value Still, it is human development Increase in Human development may not generate human capita Broader Concept (Focus on Overall Development)

About the Author

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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.