Para Summary Quiz Question - 5

  In recent decades, economists have been struggling to make use of the concept of human capital, often defined as the abilities, skills, knowledge, and dispositions that make for economic success. Yet those who use the term often assume that to conceptualize a phenomenon is a first step to manipulating it. And, indeed, “human-capital policy” is now much in fashion. But what if many of the abilities and dispositions in question are a product of history, capable of being understood and explained but not readily replicated?

(a)    Economists trying to conceptualize human capital must know that the abilities and dispositions are a product of history incapable of being replicated.

(b)   Economists trying to conceptualize human-capital policy for economic success must know history and that success cannot be replicated.

(c)   The abilities, skills, knowledge, and dispositions that make for economic success are a product of history and may not be replicable.

(d)   Economists attempting a policy based on human capital for economic success must know that the abilities referred to as human capital may not be readily replicable.

(e)      Economists struggling to replicate economic success through a human-capital policy must know that human capital is a product of history and may only be understood.

Answer & Explaination

Ans.(d)

Sol. Gist of the paragraph: Human capital is the abilities, skills, knowledge, and dispositions that make for economic success – economists are trying to conceptualize and formulate a human – capital policy for success. Human capital is a product of history and may not be readily replicable. Option (A) talks only about conceptualizing and not about using it for success. Option (B) distorts the idea in “must know history.” Option (C) does not use the terms economists or human capital or policy. Option (E) is almost correct but is a distortion in “struggling to replicate economic success” and misses the most important point about replication. Option (D), though not the ideal precis, is the best.