Given below are some statements. Read them carefully and choose the correct statement (s) from the given options.
Statement 1: Spending on education by individuals is similar to spending on consumer goods by companies with the objective of increasing future profits over a period of time.
Statement 2: Individuals invest in education with the objective of increasing their future income.
Answer & explanation
Correct answer: option 2
Spending on education by individuals is similar to spending on capital goods (not consumer goods) by companies with the objective of increasing future profits over a period of time. Likewise, individuals invest in education with the objective of increasing their future income. Like education, health is also considered as an important input for the development of a nation as much as it is important for the development of an individual.