Question

Read the following case study carefully and answer the question that follows.

Human capital can be defined as the body of knowledge possessed by the population and the capacity of the population to use the knowledge effectively. Until the late 1950s, no economist and any other social scientist did pay much attention to the role of investment in human beings as an important determinant of economic development. The birth of this idea can be dated from the presidential address of Prof. Theodore W. Schultze to the American Economic Association in December 1960. As a result, the concept of human capital formation came to the limelight. A circular relationship between human development and economic growth has come to be established. Economic growth creates conditions for better health and education facilities; which in turn spur economic growth.

Economists say that the main key player of economic development is ______.

Options

• Human capital

• Physical capital

• Real Capital

• None of these

Answer 1

Economists say that the main key player of economic development is Human capital.