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:

Assertion (A) is false but Reason (R) is true.

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

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.