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Q80 (IAS/2019) Economy β€Ί Growth, Development, Poverty & Employment β€Ί Social capital Official Key

In the context of any country, which one of the following would be considered as part of its social capital?

Result
Your answer: β€”  Β·  Correct: D
Explanation

The correct answer is option D because families are primary building blocks for social capital, creating norms and social ties, and providing a social network that benefits its members[1]. More broadly, civic engagement, honesty and social trust can reinforce each other[2], indicating that mutual trust and harmony are key components of social capital.

The other options represent different forms of capital: Option A (literacy proportion) relates to human capital, as the role of government in sustaining social capital is less clear than in the context of human capital[3], suggesting these are distinct concepts. Option B (buildings, infrastructure, and machines) represents physical capital. Option C (working-age population) is demographic capital or human resources. Social capital specifically refers to the networks, norms, trust, and social relationships that facilitate cooperation and coordination within society, making option D the only correct choice.

Sources
  1. [1] https://www.oecd.org/content/dam/oecd/en/publications/reports/2001/05/the-well-being-of-nations_g1gh268d/9789264189515-en.pdf
  2. [2] https://www.oecd.org/content/dam/oecd/en/publications/reports/2001/05/the-well-being-of-nations_g1gh268d/9789264189515-en.pdf
  3. [3] https://www.oecd.org/content/dam/oecd/en/publications/reports/2001/05/the-well-being-of-nations_g1gh268d/9789264189515-en.pdf
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Each bar shows the % of students who chose that option. Green bar = correct answer, blue outline = your choice.
Community Performance
Out of everyone who attempted this question.
63%
got it right
PROVENANCE & STUDY PATTERN
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Don’t just practise – reverse-engineer the question. This panel shows where this PYQ came from (books / web), how the examiner broke it into hidden statements, and which nearby micro-concepts you were supposed to learn from it. Treat it like an autopsy of the question: what might have triggered it, which exact lines in the book matter, and what linked ideas you should carry forward to future questions.
Q. In the context of any country, which one of the following would be considered as part of its social capital? [A] The proportion of liter…
At a glance
Origin: Books + Current Affairs Fairness: Low / Borderline fairness Books / CA: 2.5/10 Β· 7.5/10

This is a classic 'Definition by Elimination' question. While 'Social Capital' is a sociological term, options A, B, and C are standard NCERT definitions for Human Capital, Physical Capital, and Demographic Dividend respectively. If you know what the others are, the answer reveals itself.

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
In the context of a country, is the proportion of literates in the population considered part of its social capital?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 4/5
"… but the role of government in sustaining social capital is less clear than in the context of human capital…"
Why this source?
  • Explicitly distinguishes social capital from human capital, implying they are separate categories.
  • If literacy is treated as an outcome of education/human capital, this passage supports that literacy is not automatically part of social capital.
Web source
Presence: 3/5
"The first known reference to β€œsocial capital” in its contemporary sense was in the context of its importance for education and local communities (Hanifan, 1916)."
Why this source?
  • Notes the historical link between social capital and education, indicating some conceptual overlap.
  • Shows that social capital has been discussed in the context of education and local communities.
Web source
Presence: 3/5
"Families are primary building blocks for social capital. ... Although much attention has been given to the role of voluntary and civic associations, the key roles of families, schools and firms have been relatively neglected in recent debates and analyses of social capital."
Why this source?
  • Identifies families and schools as primary building blocks for social capital, linking institutions related to education to social capital formation.
  • Suggests that elements connected to education (schools) contribute to social capital, indicating some aspects of education relate to social capital.

Economics, Class IX . NCERT(Revised ed 2025) > Chapter 2: People as Resource > Quality of Population > p. 20
Strength: 5/5
β€œThe quality of population depends upon the literacy rate, health of a person indicated by life expectancy and skill formation acquired by the people of the country. The quality of the poulation ultimately decides the growth rate of the country. Literate and healthy population are an asset.”
Why relevant

States that the 'quality of population' depends on literacy and that a literate population is an asset β€” framing literacy as a population attribute linked to broader societal quality.

How to extend

A student could combine this with a standard distinction between 'human capital' (skills, education) and 'social capital' (networks, norms) to judge whether literacy more naturally fits human or social capital.

Economics, Class IX . NCERT(Revised ed 2025) > Chapter 2: People as Resource > Overview > p. 16
Strength: 5/5
β€œLike other resources population also is a resource β€” a 'human resource'. This is the positive side of a large population that is often overlooked when we look only at the negative side, considering only the problems of providing the population with food, education and access to health facilities. When the existing 'human resource' is further developed by becoming more educated and healthy, we call it 'human capital formation' that adds to the productive power of the country just like 'physical capital formation'. Investment in human capital (through education, training, medical care) yields a return just like investment in physical capital.”
Why relevant

Defines population as a 'human resource' and describes education/skill formation as 'human capital formation', directly associating literacy/education with human capital.

How to extend

Using this, a student can infer literacy is commonly treated as human capital and thus weigh against classifying it as social capital without additional social-network evidence.

Exploring Society:India and Beyond ,Social Science, Class VIII . NCERT(Revised ed 2025) > Chapter 7: Factors of Production > Challenges to human capital > p. 169
Strength: 5/5
β€œOur nation has come a long way in various aspects of human capital since independence. Literacy is an important characteristic of the population and helps enhance the skills and productivity of human capital. The Adult Literacy Rate in India is 85 per cent for males and 70 per cent for females as of 2023, as per the World Bank estimates. Despite progress in many areas, India faces challenges in developing human capital. Productivity: Ability to do more in a particular time period.”
Why relevant

Explicitly calls literacy an important characteristic that enhances skills and productivity of 'human capital'.

How to extend

A student could use this pattern to argue literacy is primarily an input to individual productive capacity (human capital) and only secondarily related to social capital unless linked to social networks/trust.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 13: Cultural Setting > LITERACY RATE > p. 89
Strength: 4/5
β€œliteracy is that it provides relatively more opportunity of employment. The literate and educated persons have better personality and can interact with the superiors and inferiors in a better and more confident way. The rate of literacy is largely determined by a large number of socio-cultural, political, and physical factors.”
Why relevant

Notes literacy provides opportunities for employment and is determined by socio-cultural factors, linking literacy to social conditions and interactions.

How to extend

A student might extend this to hypothesize that because literacy affects social interaction and status, it could influence social capital (networks/trust), so proportion literate may indirectly affect social capital measures.

INDIA PEOPLE AND ECONOMY, TEXTBOOK IN GEOGRAPHY FOR CLASS XII (NCERT 2025 ed.) > Chapter 1: Population: Distribution, Density, Growth and Composition > Rural – Urban Composition > p. 8
Strength: 3/5
β€œComposition of population by their respective places of residence is an important indicator of social and economic characteristics. This becomes even more significant for a country where about 68.8 per cent of its total population lives in village (2011).”
Why relevant

Says population composition by residence is an important indicator of social and economic characteristics, illustrating how demographic attributes serve as social indicators.

How to extend

A student could analogously treat literacy proportion as a demographic indicator that signals social characteristics (and thereby may correlate with social capital), prompting empirical comparison across regions.

Statement 2
In the context of a country, is the stock of buildings, other infrastructure and machines considered part of its social capital?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 4/5
"civic engagement, honesty and social trust can reinforce each other."
Why this source?
  • Defines social capital in terms of intangible social attributes: civic engagement, honesty and social trust.
  • Emphasises social capital as networks/relationships and norms rather than material assets.
Web source
Presence: 5/5
"use cross-country regressions incorporating variables for physical capital, education, level of income and in some cases proxy variables for various social and institutional factors"
Why this source?
  • Presents 'physical capital' as a distinct category alongside education and variables for social/institutional factors.
  • By listing 'physical capital' separately, it implies buildings, infrastructure and machines belong to physical capital, not social capital.
Web source
Presence: 4/5
"Families are primary building blocks for social capital. Families create norms and social ties, and provide a social network that benefits its members"
Why this source?
  • Identifies families, norms and social ties as the 'primary building blocks' of social capital.
  • Emphasises social capital as social networks and reciprocity, reinforcing that it is about relationships rather than physical stock.

Economics, Class IX . NCERT(Revised ed 2025) > Chapter 1: The Story of Village Palampur > Organisation of Production > p. 2
Strength: 5/5
β€œTools, machines, buildings can be used in production over many years, and are called fixed capital.β€’ (b) Raw materials and money in hand: Production requires a variety of raw materials such as the yarn used by the weaver and the clay used by the potter. Also, some money is always required during production to make payments and buy other necessary items. Raw materials and money in hand are called working capital. Unlike tools, machines and buildings, these are used up in production. There is a fourth requirement too. You will need knowledge and enterprise to be able to put together land, labour and physical capital and produce an output either to use yourself or to sell in the market.”
Why relevant

Defines tools, machines, buildings as 'fixed capital' and contrasts them with working capital and a separate 'knowledge/enterprise' requirement.

How to extend

A student could use this rule to treat buildings and machines as physical (fixed) capital and ask whether 'social capital' is usually defined to include physical assets or something else (e.g., social relations or institutions).

Exploring Society:India and Beyond ,Social Science, Class VIII . NCERT(Revised ed 2025) > Chapter 7: Factors of Production > Capital > p. 172
Strength: 5/5
β€œCapital: In economics, any asset, whether physical or financial, used to produce goods and services. Businesses also require capital that comprises monetary resources and durable assets like machinery, tools, equipment, vehicles, vending carts, computers, shops, factories, office buildings, etc., for their day-to-day operations. Just as Ratna would have required money to take the land on lease, buy the furniture and kitchen equipment, etc. These are all called 'capital' β€” money plus human-made resources that are used to produce goods and services. Capital is essential to a manufacturing unit or a services sector enterprise. But where do businesses get the capital?”
Why relevant

Gives a broad economic definition of 'capital' that explicitly lists machinery, tools, shops, factories and office buildings as capital used to produce goods and services.

How to extend

One could extend this by comparing standard lists of 'capital' with common definitions of 'social capital' (if social capital refers to networks/trust, then buildings would differ).

Macroeconomics (NCERT class XII 2025 ed.) > Chapter 4: Determination of Income and Employment > 4.1.2. Investment > p. 56
Strength: 4/5
β€œInvestment is defined as addition to the stock of physical capital (such as machines, buildings, roads etc., i.e. anything that adds to the future productive capacity of the economy) and changes in the inventory (or the stock of finished goods) of a producer. Note that 'investment goods' (such as machines) are also part of the final goods – they are not intermediate goods like raw materials. Machines produced in an economy in a given year are not 'used up' to produce other goods but yield their services over a number of years. Investment decisions by producers, such as whether to buy a new machine, depend, to a large extent, on the market rate of interest.”
Why relevant

Defines investment as addition to the stock of physical capital (machines, buildings, roads) β€” framing these items as 'physical capital' that expand productive capacity.

How to extend

A student could use the 'physical capital' label to argue these items belong to physical/economic capital categories rather than to social capital, which may be about social resources.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 15: Infrastructure > 15.2 Indian Economy > p. 438
Strength: 4/5
β€œSocial Infrastructure: It refers to the central components of societal change like schools, colleges, hospitals, parks, etc., to uplift the Human Development Index of the country. It mainly focuses on human resource development. β€’ Economic Infrastructure: It is also known as hard infrastructure. Their Complementary Nature: Sources of energy, better means of transport and communication, which come under economic infrastructure, are so necessary for economic growth. However, this economic growth would be of no use if the population of the country is illiterate and unhealthy. Thus, a comprehensive focus on both of them is the key to a country's all-round economic development.”
Why relevant

Distinguishes 'social infrastructure' (schools, hospitals, parks) from 'economic/hard infrastructure' (energy, transport) and links social infrastructure to human development.

How to extend

One could extend this by asking whether 'social capital' maps onto 'social infrastructure' (public goods for human development) or instead denotes social relations; comparing the two meanings helps test whether physical infrastructure equals social capital.

Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 1: Fundamentals of Macro Economy > Human Capital: > p. 28
Strength: 3/5
β€œJust as a country can turn physical resources like land into physical capital like factories, similarly, it can also turn human resources like students into human capital like engineers and doctors. Societies need sufficient human capital in the first place - in the form of competent people who have themselves been educated and trained as professors and other professionals. In other words, we need good human capital to produce other human capital. Sources of human capital formation is investments in education, health, on-the-job training etc. Human capital considers education and health as a means to increase labour productivity. Human capital treats human beings as a means to an end; the end being the increase in productivity”
Why relevant

Contrasts physical capital formation with human capital formation, emphasizing that human capital is investments in people (education/health) rather than physical assets.

How to extend

A student might use this contrast to place buildings/machines clearly in the 'physical capital' box and then check whether 'social capital' is typically categorized with human capital (social relations/skills) or physical capital.

Statement 3
In the context of a country, is the size of the population in the working-age group considered part of its social capital?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 4/5
"civic engagement, honesty and social trust can reinforce each other. The roots of the concept lie in earlier research. The idea of social capi-tal can be traced to the work of Alexis de Tocqueville..."
Why this source?
  • Defines social capital in terms of civic engagement, honesty and social trust β€” characteristics and relationships rather than demographic counts.
  • Shows the concept's roots and typical measures focus on social behaviors and networks, not population-age structure.
Web source
Presence: 4/5
"While the region is projected to experience a small rise in the population of working -age people (15 β€”64 years old ), from 3.18 billion in 2023 to 3.28 billion in 2050, the share of the working -age population as a proportion of the overall population will drop from 67. 3 to 63.4 per cent over the same period ."
Why this source?
  • Treats the size/share of the working-age population as a demographic/economic statistic (projected counts and proportions).
  • This passage presents working-age population as a population metric, distinct from social-capital concepts described elsewhere.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 19: Population and Demographic Dividend > MEASURES TO CHECK POPULATION EXPLOSION > p. 564
Strength: 5/5
β€œNevertheless, population of a country is an asset for its economy if the maximum section of it belongs to the age group of 15 to 64 years (working age group) – and also, if most of them are employed and free from poverty. Unfortunately, in India, a large section of population is either jobless or is employed in such a way that they are vulnerable to displacement. Such scenario leads to other social problems like poverty, child labour, inadequate education, low access to health facilities and so on. Thus, to address such situation, measures are broadly classified into three categories:”
Why relevant

States that population is an asset when the maximum section is in the 15–64 (working) age group and links this to economic and social outcomes (employment, poverty, social problems).

How to extend

A student could treat a large working-age share as a component of a country's social/economic assets and compare it to typical definitions of social capital (networks, norms) to judge overlap or distinction.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 19: Population and Demographic Dividend > TACKLING SKILL DEFICIT THROUGH HUMAN CAPITAL > p. 574
Strength: 5/5
β€œHuman capital refers to increasing the knowledge, skill levels and capacities of the people of the country. It is termed as an intangible asset that plays a great role in the economic growth and development of a nation. Hence, there is a need to transform the working age population into human capital in order to reap the benefits of demographic dividend in India. General education improves knowledge of the people while skill training enhances their employability and equips them to tackle the requirements of labour market. Persisting skill deficit among the working age is one of the important factors for dropping rates of employability.”
Why relevant

Defines human capital as knowledge, skills and capacities of people and explicitly argues for transforming the working-age population into human capital to gain demographic dividend.

How to extend

A student could infer that the working-age population becomes an intangible asset (human capital) when trained, then assess whether 'social capital' is analogous or distinct from this human-capital role.

Economics, Class IX . NCERT(Revised ed 2025) > Chapter 2: People as Resource > Overview > p. 16
Strength: 4/5
β€œLike other resources population also is a resource β€” a 'human resource'. This is the positive side of a large population that is often overlooked when we look only at the negative side, considering only the problems of providing the population with food, education and access to health facilities. When the existing 'human resource' is further developed by becoming more educated and healthy, we call it 'human capital formation' that adds to the productive power of the country just like 'physical capital formation'. Investment in human capital (through education, training, medical care) yields a return just like investment in physical capital.”
Why relevant

Describes population as a 'human resource' and explains human capital formation through education and health as an intangible productive asset.

How to extend

A student could use this rule to separate 'size of working-age population' (resource) from 'human capital' (quality), then ask whether social capital would be quality/relations rather than mere size.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 13: Cultural Setting > AGE COMPOSITION > p. 95
Strength: 4/5
β€œAge composition is also an important characteristic of population. It helps in ascertaining the longevity, work-force, and the dependent population (younger age group and the senior citizens). Table 13.16 vividly shows that between 37 and 42% was the younger age group in the last century, while the work force varied between 52 and 57%. The highest dependency ratio of the younger age group was in 1971 when it rose to 42%. There is a steady increase in the senior citizens age (Geriatrics) group which was 5.1% in 1901 and rose to about 7% in 2001, and became 8.0% of the total population in 2011.”
Why relevant

Explains age composition helps ascertain workforce and dependent population and shows how proportions change over time (dependency ratios).

How to extend

A student could use dependency/workforce ratios from a country map or data to judge whether a high working-age share constitutes an asset potentially counted under social capital or should be treated separately.

INDIA PEOPLE AND ECONOMY, TEXTBOOK IN GEOGRAPHY FOR CLASS XII (NCERT 2025 ed.) > Chapter 1: Population: Distribution, Density, Growth and Composition > What is work participation rate? > p. 11
Strength: 4/5
β€œThe proportion of working population, of the states and Union Territories show a variation from about 29.1 per cent in Lakshdweep to about 51.9 per cent in Himachal Pradesh. The states with larger percentages of workers are Himachal Pradesh, Sikkim, Chhattisgarh, Andhra Pradesh, Karnataka, Arunachal Pradesh, Nagaland, Manipur and Meghalaya. Among the Union Territories, Dadra and Nagar Haveli and Daman and Diu have higher participation rate. It is understood that, in the context of a country like India, the work participation rate tends to be higher in the areas of lower levels of economic development since number of manual workers are needed to perform the subsistence or near subsistence economic activities.”
Why relevant

Gives work participation rates and notes regional variations and links to levels of economic development, implying that working-age numbers alone don't equal productive contribution.

How to extend

A student could extend this by checking participation/employment data: if many working-age are inactive, the mere size is less likely to serve as 'social capital'.

Statement 4
In the context of a country, is the level of mutual trust and harmony in society considered part of its social capital?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Constitution at Work, Political Science Class XI (NCERT 2025 ed.) > Chapter 7: FEDERALISM > Conclusion > p. 172
Presence: 4/5
β€œFederalism is like a rainbow, where each colour is separate, yet together they make a harmonious pattern. Federalism has to continuously maintain a difficult balance between the centre and the States. No legal or institutional formula can guarantee the smooth functioning of a federal polity. Ultimately, the people and the political process must develop a culture and a set of values and virtues like mutual trust, toleration and a spirit of cooperation. Federalism celebrates both unity as well as diversity. National unity cannot be built by streamlining differences. Such forced unity only generates greater social strife and alienation and tends finally to destroy unity.”
Why this source?
  • Identifies mutual trust, toleration and a spirit of cooperation as core cultural values needed for federal unity.
  • Links these social values directly to the smooth functioning of political arrangements and national harmony.
Democratic Politics-II. Political Science-Class X . NCERT(Revised ed 2025) > Chapter 2: Federalism > What is federalism? > p. 15
Presence: 4/5
β€œ6 Sources of revenue for each level of government are clearly specified to ensure its financial autonomy. 7 The federal system thus has dual objectives: to safeguard and promote unity of the country, while at the same time accommodate regional diversity. Therefore, two aspects are crucial for the institutions and practice of federalism. Governments at different levels should agree to some rules of power-sharing. They should also trust that each would abide by its part of the agreement. An ideal federal system has both aspects : mutual trust and agreement to live together. The exact balance of power between the central and the state government varies from one federation to another.”
Why this source?
  • States that an ideal federal system requires mutual trust and agreement to live together between governments/units.
  • Connects trust as a social prerequisite for institutional power-sharing and stable governance.
Democratic Politics-II. Political Science-Class X . NCERT(Revised ed 2025) > Chapter 5: Outcomes of Democracy > Accommodation of social diversity > p. 70
Presence: 3/5
β€œAll you are saying is that democracy ensures that people do not break each other's head. This is not harmony. Should we be happy about it? Do democracies lead to peaceful and harmonious life among citizens? It will be a fair expectation that democracy should produce a harmonious social life. We have seen in the earlier chapters how democracies accommodate various social divisions. We saw in the first chapter how Belgium has successfully negotiated differences among ethnic populations. Democracies usually develop a procedure to conduct their competition. This reduces the possibility of these tensions becoming explosive or violent. No society can fully and permanently resolve conflicts among different groups.”
Why this source?
  • Treats harmonious social life as a plausible outcome expected from democratic arrangements.
  • Explains how institutional procedures reduce tensions and support social harmony among diverse groups.
Pattern takeaway: UPSC loves 'Term Disambiguation'. They take a popular development buzzword and surround it with distractors that are valid definitions of *other* related concepts. Mastery of the distractors (A, B, C) is as important as knowing the answer.
How you should have studied
  1. [THE VERDICT]: Sitter. Solvable purely by eliminating standard definitions found in Class IX Economics (Chapter 2: People as Resource).
  2. [THE CONCEPTUAL TRIGGER]: The 'Forms of Capital' framework in Development Economics (Physical vs. Human vs. Social vs. Natural).
  3. [THE HORIZONTAL EXPANSION]: Memorize the 5 Capitals Framework: 1. Physical (Infrastructure), 2. Human (Skills/Health), 3. Social (Trust/Networks), 4. Natural (Ecosystems), 5. Financial (Stocks/Bonds). Also, distinguish 'Bonding' (exclusive) vs. 'Bridging' (inclusive) social capital.
  4. [THE STRATEGIC METACOGNITION]: When you study a term like 'Human Capital' in NCERT, explicitly ask: 'What is NOT Human Capital?' The exam tests the boundaries between these similar-sounding concepts.
Concept hooks from this question
πŸ“Œ Adjacent topic to master
S1
πŸ‘‰ Literacy as an element of human capital
πŸ’‘ The insight

Literacy is a core attribute that builds human capital by enhancing skills, productivity and employability of the population.

High-yield for economy and development questions: helps answer queries on human capital formation, demographic dividend and education policy. Connects population studies with labor productivity and economic growth; useful for questions comparing human vs other forms of capital.

πŸ“š Reading List :
  • Exploring Society:India and Beyond ,Social Science, Class VIII . NCERT(Revised ed 2025) > Chapter 7: Factors of Production > Challenges to human capital > p. 169
  • Economics, Class IX . NCERT(Revised ed 2025) > Chapter 2: People as Resource > Overview > p. 16
πŸ”— Anchor: "In the context of a country, is the proportion of literates in the population co..."
πŸ“Œ Adjacent topic to master
S1
πŸ‘‰ Quality of population: literacy, health and skills
πŸ’‘ The insight

The quality of a country's population is measured by indicators such as literacy rate, life expectancy and skill formation.

Important for GS and essay papers when assessing development indicators and policy priorities. Links demography, public health and education policy; enables framing solutions-oriented answers on improving national capacity.

πŸ“š Reading List :
  • Economics, Class IX . NCERT(Revised ed 2025) > Chapter 2: People as Resource > Quality of Population > p. 20
  • Economics, Class IX . NCERT(Revised ed 2025) > Chapter 2: People as Resource > Overview > p. 16
πŸ”— Anchor: "In the context of a country, is the proportion of literates in the population co..."
πŸ“Œ Adjacent topic to master
S1
πŸ‘‰ Official definition and measurement of literacy (Census basis)
πŸ’‘ The insight

Census definition (person aged 7+ who can read and write with understanding) determines the reported proportion of literates in the population.

Necessary for accurate interpretation of literacy statistics and for critiquing or comparing datasets in exams and policy analysis. Useful for questions on indicators, measurement issues and programme targeting.

πŸ“š Reading List :
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 13: Cultural Setting > LITERACY RATE > p. 88
πŸ”— Anchor: "In the context of a country, is the proportion of literates in the population co..."
πŸ“Œ Adjacent topic to master
S2
πŸ‘‰ Physical capital vs Human capital
πŸ’‘ The insight

Machines, tools and buildings are physical capital, distinct from human capital which comprises education, health and skills.

High-yield for UPSC Economy and GS papers because many questions ask to compare types of capital and their roles in growth. Connects to topics like capital formation, productivity and human development priorities, and helps frame answers on policy trade-offs between investing in infrastructure versus education/health.

πŸ“š Reading List :
  • Economics, Class IX . NCERT(Revised ed 2025) > Chapter 1: The Story of Village Palampur > Organisation of Production > p. 2
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 1: Fundamentals of Macro Economy > Human Capital: > p. 28
  • Exploring Society:India and Beyond ,Social Science, Class VIII . NCERT(Revised ed 2025) > Chapter 7: Factors of Production > Capital > p. 172
πŸ”— Anchor: "In the context of a country, is the stock of buildings, other infrastructure and..."
πŸ“Œ Adjacent topic to master
S2
πŸ‘‰ Economic infrastructure vs Social infrastructure
πŸ’‘ The insight

Hard infrastructure (roads, energy, transport) is economic infrastructure, whereas schools, hospitals and parks represent social infrastructure aimed at human development.

Useful for answering policy and governance questions on inclusive growth, infrastructure financing and PPP models. Links infrastructure investment to HDI outcomes and helps structure essays/answers contrasting growth-centric and human-centric investment strategies.

πŸ“š Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 15: Infrastructure > 15.2 Indian Economy > p. 438
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 14: Infrastructure and Investment Models > Mains Questions: > p. 444
πŸ”— Anchor: "In the context of a country, is the stock of buildings, other infrastructure and..."
πŸ“Œ Adjacent topic to master
S2
πŸ‘‰ Capital stock (stock) vs Investment (flow)
πŸ’‘ The insight

Buildings, machines and infrastructure constitute the capital stock of an economy; investment is the addition to that stock in a period.

Essential for questions on national income accounting, growth measurement and macroeconomic policy. Enables clear explanations of gross investment, replacement/maintenance of capital, and the distinction between stock-and-flow concepts in economic analysis.

πŸ“š Reading List :
  • Macroeconomics (NCERT class XII 2025 ed.) > Chapter 2: National Income Accounting > p. 12
  • Macroeconomics (NCERT class XII 2025 ed.) > Chapter 4: Determination of Income and Employment > 4.1.2. Investment > p. 56
πŸ”— Anchor: "In the context of a country, is the stock of buildings, other infrastructure and..."
πŸ“Œ Adjacent topic to master
S3
πŸ‘‰ Working-age population as an economic asset
πŸ’‘ The insight

The proportion of people aged roughly 15–64 is presented as an asset for a country's economy when they are employed and not living in poverty.

High-yield for questions on population policy, dependency ratios and economic development; connects population structure to labour-force potential and informs arguments about policy measures to harness or mitigate demographic effects.

πŸ“š Reading List :
  • Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 19: Population and Demographic Dividend > MEASURES TO CHECK POPULATION EXPLOSION > p. 564
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 13: Cultural Setting > Occupational Strucure > p. 97
πŸ”— Anchor: "In the context of a country, is the size of the population in the working-age gr..."
πŸŒ‘ The Hidden Trap

Pierre Bourdieu's 'Cultural Capital' (education, style of speech, dress) vs. 'Social Capital' (who you know). Expect a question distinguishing 'Human Capital' (what you know) from 'Cultural Capital' (how you present it).

⚑ Elimination Cheat Code

The 'Tangible vs. Intangible' Heuristic. Options A (Literacy rate), B (Buildings), and C (Population size) are quantitative, tangible statistics. Option D (Trust/Harmony) is qualitative and intangible. 'Social' concepts are rarely physical stocks; they are relational flows. Pick the intangible option.

πŸ”— Mains Connection

Mains GS-2 & GS-4: Social Capital is the bedrock of 'Good Governance'. Low social capital leads to high transaction costs (corruption, litigation) and communal violence (Internal Security). Use this term in essays on Civil Society.

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SIMILAR QUESTIONS

IAS Β· 1996 Β· Q136 Relevance score: -2.07

The given pie charts show the proportion of literates and illiterates in a country, in the year 1970 and 1990 and also the proportion of males (M) and females (F) among the literates. Which one of the following statements can be said to be beyond any doubt ?

CDS-II Β· 2021 Β· Q49 Relevance score: -5.15

Which one of the following statements in the context of social sector spending in India during 2014 - 19 (both States and the Union Government together) is true ?

IAS Β· 2001 Β· Q143 Relevance score: -5.83

A city has a population of 3,00,000 out of which 1,80,000 are males. 50% of the population is literate. If 70% of the males are literate, the number of literate females is

IAS Β· 2018 Β· Q49 Relevance score: -6.30

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

CDS-II Β· 2024 Β· Q17 Relevance score: -6.46

Which of the following is not included in the Capital Account of the Balance of Payments of a country?