what is d difference b/w physical capital formation and human capital formation?
what is called HYV seeds and what is called GDP?
Ans.1 Difference Between Human Capital Formation and Physical Capital Formation
Human Capital Formation | Physical Capital Formation |
Human capital formation implies additions to the skills, knowledge and capacity of the individuals, so that they could contribute more efficiently to the production process. | Physical capital formation refers to additional investment made in forms of sophisticated and advance tools, machineries and other physical productive tangible assets used in the production process. |
Human capital formation leads to the all-round development, which further results in high status of all the human beings in the country. | It results in the mechanisation of the economy as a whole. |
It indirectly aids in the process of production via employing physical capital. It implies use of advanced machines and modern mechanics in the process by high qualified and tech-heavy personnel. | It directly affects the productivity and production process. This implies use of advanced machines and modern mechanics in the production process. |
The formation of human capital can itself lead to improvement in physical capital. In this sense, physical capital formation is a derivative of the human capital formation. | However, formation of physical capital need not necessarily imply human capital formation. |
Ans 2:
Meaning of HYV Seeds:
High Yielding Variety of seeds was developed by the Nobel Laureate Dr. Narman Barlauf in Mexico. HYV seeds are also known as 'miracle seeds'. These seeds are more productive and need regular and adequate irrigation facilities along with greater use of fertilisers and pesticides. In 1966, consequent to the use of HYV seeds, Indian agricultural sector experienced Green Revolution, especially in the crops of rice and wheat. HYV seeds grow faster than the normal seeds and, consequently, crops can be harvested in a much shorter time period. Initially, HYV seeds were used in states like Punjab, Andhra Pradesh and Tamil Nadu (as these states had more suitable irrigation facilities) and later on to other states. Consequent to the use of HYV seeds, the production of food grains in 1967-68 increased by 25% (approx).
Meaning of GDP:
Gross Domestic Product (GDP) refers to the market value of all the goods and services produced within the domestic territory of a country produced during an accounting period. It is measured in the currency value of a particular country. For example, in India, GDP is measured every year and is expressed in terms of Rupees. Higher GDP implies higher economic activity and further, higher, production process.