Knowledge economy human capital – UGC NET Question

In a knowledge economy, the most crucial asset is the skills, expertise and creativity of people, often referred to as human capital. Universities build this capital by educating students and generating new knowledge, so “human” capital is the correct completion.

Option A:
Option A is correct because human capital captures the economic value of educated and trained individuals whose competencies drive innovation and productivity.

Option B:
Option B is incorrect since “physical” capital refers to machines, buildings and equipment, which universities may use but do not primarily “produce” through teaching and research.

Option C:
Option C is wrong because “purely military” capital would refer to armed strength or weaponry, which is not the main outcome of university education in a knowledge economy.

Option D:
Option D is incorrect as “natural resource” capital denotes raw materials like minerals or forests, which are given by nature rather than being produced by educational processes.