Read the following statements - Assertion (A) and Reason (R):
Assertion (A): Human Capital Formation is a stock concept.
Reason (R): Stock refers to variables that are measured at a specific point in time.
From the given alternatives choose the correct one:
Assertion (A): Human Capital Formation is a stock concept.
Reason (R): Stock refers to variables that are measured at a specific point in time.
From the given alternatives choose the correct one:
Answer & explanation
Correct answer: option 4
Human capital is a stock concept, but human capital formation is a flow concept because it is simply adding to the current stock of human capital and can only be measured over time. Human capital formation is thus a flow concept.