Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Human Capital Formation in India

Question:

Assertion: Firms insist that workers work for a specific period after on-the-job training to recover the benefits of enhanced productivity resulting from the training.

Reasoning: The firms need to ensure that the investment made in training pays off by retaining workers for a certain period, during which the firm can benefit from the increased productivity gained through training.

Options:

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

Both Assertion (A) and reasoning (R) are correct but R is not the correct explanation of A.

Assertion (A) is true but Reasoning (R) is not correct.

Assertion (A) is not true but Reasoning (R) is correct.

Correct Answer:

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

Explanation:

The assertion correctly states the practice of firms insisting on a specific work period after training to recover training benefits. The reasoning provides a valid explanation for this practice, as it links the recovery of enhanced productivity benefits to the need for workers to work for a specific duration after training.