Read the passage and answer the following questions:

Question

Passage:
Both forms of capital formation are the outcomes of conscious investment decisions. The ownership of physical capital is the outcome of the conscious decision of the owner. Physical capital formation is mainly an economic and technical process. Human capital formation takes place in one's life when she/he is unable to decide whether it would maximize her/his earnings. Human capital formation is partly a social process and partly a conscious decision.

Questions:
Q1: Which of the following does not correctly differentiate between physical and human capital?
A: (d) Human capital gets obsolete with time whereas physical capital does not.

Q2: In the context of the paragraph, it can be argued that human capital depreciates faster than physical capital. The given statement is:
A: (b) False.

Q3: Machines and industrial tools are examples of:
A: (a) Physical capital

Q4: Investment in education by parents is the same as_______?
A: (c) Investment in capital goods by companies

Accepted Answer

(d) Human capital gets obsolete with time whereas physical capital does not.

Accepted Answer

(b) False.

Accepted Answer

(a) Physical capital

Accepted Answer

(c) Investment in capital goods by companies