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 (A) Migration is a source of human capital formation.
Reason(R) Migration involves cost of transport, higher cost of living in the migrated places and psychic costs of living in a strange sociocultural setup. But the benefits exceeds the costs involved in the process.
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:

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Explanation:

Migration involves cost of transport, higher cost of living in the migrated places and psychic costs of living in a strange socio cultural setup. However, the enhanced earnings in the new place outweigh the costs of migration and hence, expenditure on migration is also a source of human capital formation.