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: Expenditure regarding on-the-job training is not a source of human capital formation .
Reason: On the job training provides return in the form of enhanced labour productivity.
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:
Assertion (A) is false but Reason (R) is true.
Explanation:
Human capital is the one which is more productive due to skills, knowledge and experience it possesses. On the job training is thus a source of human capital formation as it increases productivity of workers by imparting the required skills and knowledge. The return of such expenditure on training is in the form of enhanced labour productivity is more than the cost of it.