Read the following statements - Assertion (A) and Reason (R):
Assertion (A): Human Capital Formation is an important determinant of a country's economic growth.
Reason (R): Human capital formation leads to better resource utilization, which improves the productivity.
From the given alternatives choose the correct one:
Answer & explanation
Correct answer: option 1
The correct answer is Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Assertion (A): Human capital formation is indeed a crucial determinant of economic growth. It refers to the process of investing in education, training, and healthcare to enhance the skills and knowledge of the workforce. A skilled and knowledgeable workforce can improve productivity, innovation, and overall economic efficiency.
Reason (R): This statement is also true and accurately explains the assertion. When individuals have better education and training, they can utilize resources more effectively. For example, skilled workers can operate machinery more efficiently, reduce waste, and develop new technologies. This improved resource utilization leads to higher productivity and economic growth.
Therefore, both statements are correct, and the reason effectively explains why human capital formation is important for economic growth.