Assertion (A): Human capital depreciates with continuous use, in the same way as a machine.
Reason (R): Depreciation of human capital takes place with ageing, but it can be reduced to a large extent through continuous investment in education and health.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A) is false but (R) is true.
Both forms of capital depreciate, but in different ways. A machine wears out with use; human capital depreciates with ageing.
Assertion (A): Human capital depreciates with continuous use, in the same way as a machine. — False. Continuous use wears out a machine. Human capital does not wear out because it is used; it depreciates as the person grows old.
Reason (R): Depreciation of human capital takes place with ageing, but it can be reduced to a large extent through continuous investment in education and health. — True. Further learning and good health care keep a person’s skills and ability to work in good shape.
NCERT (2026-27): “Box 4.1: Physical and Human Capital … Both forms of capital depreciate with time but the nature of depreciation differs between the two. Continuous use of machine leads to depreciation and change of technology makes a machine obsolete. In the case of human capital, depreciation takes place with ageing but can be reduced, to a large extent, through continuous investment in education, health, etc. This investment also facilitates the human capital to cope with change in technology which is not the case with physical capital.” |