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:
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:
Answer & explanation
Correct answer: option 2
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.