Read the following statements - Assertion (A) and Reason (R):
Assertion: Expenditure incurred for acquiring information relating to the labour market and other markets is NOT a source of human capital formation.
Reason: People want to know the level of salaries associated with various types of jobs.
From the given alternatives choose the correct one:

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

The correct answer is Option 4: Assertion (A) is false but Reason (R) is true.

People spend to acquire information relating to the labour market and other markets like education and health. For example, people want to know the level of salaries associated with various types of jobs, whether the educational institutions provide the right type of employable skills and at what cost. This information is necessary to make decisions regarding investments in human capital as well as for efficient utilisation of the acquired human capital stock. Expenditure incurred for acquiring information relating to the labour market and other markets is also a source of human capital formation.