Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Human Capital Formation in India

Question:
Read the following: Assertion (A) and Reason (R). Select one of the following accurate options:
Assertion (A): Migration expenditure is a source of human capital formation.
Reason (R): Migration to other countries involves the cost of moving from one location to another as well as the higher cost of living in the migrated locations.
Alternatives:
Options:
Assertion (A) and Reason (R) are both true and Reason (R) is the correct explanation for Assertion (A).
Assertion (A) and Reason (R) are both true, but Reason (R) is not the correct explanation for Assertion (A).
The assertion (A) is correct, but the reasoning (R) is incorrect.
While Assertion (A) is false, Reason (R) is correct.
Correct Answer:
Assertion (A) and Reason (R) are both true, but Reason (R) is not the correct explanation for Assertion (A).
Explanation:
Expenditure on migration is a source of human capital formation as enhanced earnings in the migrated place is more than the increase in costs due to migration. This leads to human capital formation through fuller utilisation of skills.