Read the following statements - Assertion (A) and Reason (R):
Assertion: Physical capital can be easily sold in the market. Human capital is not sold in the market.
Reason: Physical capital is tangible and human capital is intangible.
From the given alternatives choose the correct one:

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

The correct answer is Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Assertion (A): This is correct. Physical capital, like machinery or buildings, can be sold in the market. However, human capital, consisting of skills and knowledge, cannot be directly sold.
Reason (R): This is also correct and provides a clear explanation for the assertion. Physical capital is tangible, meaning it has a physical form. Human capital, on the other hand, is intangible, existing as skills and knowledge within individuals. This difference in tangibility makes it easier to sell physical capital compared to human capital.