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Q.

Which capital will you consider the best land, labour, physical capital, or human?


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a

Human capital

b

Land

c

Both

d

Physical 

answer is A.

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Detailed Solution

Human capital is considered the best. Though land, labour, and physical capital are indispensable elements of society. This is because it is a human resource that can make suitable use of land and capital. Land and capital cannot become useful on their own and only human resources can think, analyse and make decisions. Human capital includes the workforce and skills that can enhance production and output more efficiently while minimising costs and maximising profits. Thus, we develop human capital, and all others will automatically develop and lead to progress.
 
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