How is human capital generally defined?

Human capital is defined as the knowledge, skills, experience, and attributes that individuals possess, which enable them to contribute to economic productivity and creativity within society. This concept emphasizes the value that individuals add to the workforce through their education, training, and personal capabilities.

Investing in human capital, such as education and professional development, can lead to higher productivity, innovation, and economic growth, making it a critical component of sustainable development. By focusing on the knowledge and attributes of individuals, societies can improve their labor force quality, effectively respond to changing economic conditions, and enhance overall well-being.

The other options highlight different aspects of production and capital but do not encapsulate the essence of human capital. Physical resources, financial capital, and machines contribute to economic activities but lack the personal element of skills and knowledge that define human capital.