Knowledge economy role of HE – UGC NET Question

In a knowledge economy, the most critical asset is human capital—people’s skills, expertise and creativity. Universities contribute to this by educating students and conducting research. The stem links universities to capital produced through research and skilled graduates, which clearly indicates “human” capital.

Option A:
Option A is incorrect because physical capital refers to machines and infrastructure, which universities use but are not primarily designed to produce.

Option B:
Option B is correct as human capital captures the added value created when individuals gain advanced knowledge and competencies through higher education.

Option C:
Option C is wrong since “purely military” capital refers to defence capabilities, not the broad economic contribution of university graduates in civilian sectors.

Option D:
Option D is incorrect because natural resource capital describes assets like minerals or forests, which are not directly generated by teaching and research.