Question

India's population is over 1.3 billion, while the population of the United States is about 300 million. This fact means that India has much more human capital than the U.S. does. True or false? Explain your answer.

Answer 1

Dear students, as we know that Human capital is defined as the experience, knowledge and skills that are embodied in the ability of human beings or employee of an industry to perform labour so as to produce the economic value. It plays an important role in achieving the goals and objectives of an economy.This clearly indicates that Human Capital does not refers to the population present in a country rather it refers to the experienced persons that can contribute to the economic development of an economy.

So far as India and US are concerned , India's population is 1.3 billion while that of US is 300 million , this does not mean that India has much more human capital than that of US because as said earlier human capital refers to skilled persons of a country not the increased population. It may be possible that US may contain more skilled persons than India. Hence, Human capital of US may be more than that of India.

Thus, the given statement is not true, because higher population does not mean more Human Capital rather more knowledgable and skilled persons mean higher Human Capital.Hence, it is not mandatory that India's Human Capital is more than that of US.