Final answer:
Both human resource and human capital, as well as human development and human capital, are related, making 'Both a and b are correct' the true statement. Human capital involves skills, knowledge, and health that enable productivity, and is integral along with physical capital and technology for economic growth.
Step-by-step explanation:
The statement that is true about human capital is that both human resource and human capital are related to each other and human development and human capital are related to each other. Therefore, the correct answer is 'Both a and b are correct'. Human capital refers to the accumulated skills, knowledge, education, and health endowed in people which makes them productive. It is closely related to human development, which is about expanding the richness of human life, rather than simply the richness of the economy in which human beings live.
An example illustrating this is that children who receive proper nutrition in their early years tend to have improved human capital, as they are healthier and potentially more productive as adults. Similarly, higher education, such as going to college, is an investment in human capital, as it enhances an individual's skill sets and the quality of production they can contribute to.
Human capital, physical capital, and technology all work in conjunction to foster economic growth. For an economy to thrive, it needs the inputs of these factors in its aggregate production function as they significantly impact economic outcomes and productivity. Workers with a higher level of education and skills can drive technological innovations, which in turn can demand new investments in physical capital, further enhancing human capital through additional training.