Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Human Capital Formation in India

Question:
Read the following statements - Assertion (A) and Reason (R):
Assertion (A): Education and health spending are important determinants of human capital formation.
Reason (R): Human capital formation is a continuous and ongoing process.
From the given alternatives choose the correct one:
Options:
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true but Reason (R) is false.
Assertion (A) is false but Reason (R) is true.
Correct Answer:
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
Explanation:
Investment in education increases skills and knowledge and investment in the health sector increases the efficiency, efficacy, and productivity of a nation’s workforce. That is why education and health spending are important determinants of human capital formation.