Q. Consider the following statements:

1. Human capital is, in certain respects, superior to other resources such as land and physical capital.
2. Without human intervention, land and capital cannot become useful resources by themselves.

Which of the above statements is / are correct?
Answer: Both 1 and 2
Notes: Both statements are correct. Human capital can utilize, modify, and enhance land and physical capital, making these resources productive. Land and capital by themselves are inert and require human input for usefulness. Thus, human capital provides a unique advantage by generating value from other resources through knowledge, skills, and initiative.