Consider the following statements:<br/>Human capital formation as a concept is better explained in terms of a process which enables<br/>1. individuals of a country to accumulate more capital.<br/>2. increasing the knowledge, skill levels and capacities of the people of the country.<br/>3. accumulation of tangible wealth.<br/>4. accumulation of intangible wealth.<br/><br/>Which of the statements given above is/are correct?

1. Individuals of a country to accumulate more capital — Human capital formation is not about people accumulating financial/physical capital; it is about improving people themselves through education, health and training. Verdict: Incorrect.

2. Increasing the knowledge, skill levels and capacities of the people of the country — This is the core meaning of human capital formation. Verdict: Correct.

3. Accumulation of tangible wealth — Tangible wealth means physical assets; that is not human capital. Verdict: Incorrect.

4. Accumulation of intangible wealth — Human capital is an intangible asset embodied in people, such as skills, knowledge and abilities. Verdict: Correct.

Therefore, statements 2 and 4 are correct.