2018 GS Paper I, all questions

UPSC Prelims 2018 · GS Paper I

Question 49: Economy and Social Development

Consider the following statements : Human capital formation as a concept is better explained in terms of a process which enables

  1. 1.individuals of a country to accumulate more capital.
  2. 2.increasing the knowledge, skill levels and capacities of the people of the country.
  3. 3.accumulation of tangible wealth.
  4. 4.accumulation of intangible wealth.

Which of the statements given above is/are correct ?

a1 and 2
b2 only
c2 and 4
d1, 3 and 4

AnswerUPSC’s answer is (c).

Human capital formation is the process of raising the knowledge, skills, health and capacities of the people, mainly through education, training and health care. The result is an intangible stock of wealth embodied in people, which raises productivity. Accumulating money or tangible assets such as machinery, land and buildings is physical capital formation, not human capital formation.

  • 1. Accumulating capital is physical or financial capital formation.
  • 2. Knowledge, skills and capacities are human capital.
  • 3. Tangible wealth is physical capital.
  • 4. Human capital is an intangible stock of wealth.

How you could have got this

  1. If you were sure statement 1 is not correct, (a) and (d) go: each of them includes 1.

    What you needed to know: Accumulating capital is physical or financial capital formation.

  2. Then, if you were sure statement 4 is correct, (b) goes: it leaves 4 out.

    What you needed to know: Human capital is an intangible stock of wealth.

Only (c) is left. You didn’t need statements 2 or 3.

Which options go is worked out from UPSC’s key and the options, not by a model.

Why each option is right or wrong
  • (a) Wrong: statement 1 describes accumulating capital, a different concept.
  • (b) Incomplete: intangible wealth (statement 4) also applies.
  • (c) Right: statements 2 and 4.
  • (d) Wrong: statements 1 and 3 describe physical capital.

Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2018, General Studies Paper I, Series A. The paper on upsc.gov.in.