ECONOMICS
HUMAN CAPITAL
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Both Assertionand Reason are true and R is the correct explanation of A
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Both Reason and Assertion are true and Reason is not the correct explanation of Assertion
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A is true but R is false
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Assertion is false but reason is true
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Detailed explanation-1: –It provides knowledge to understand the changes taking place in society; -It also stimulates innovations; -It facilitates the adaptation of new technologies.
Detailed explanation-2: -Assertion (A) – Human capital treats human beings as a means to an end (increase in productivity). Reason(R) – Human Capital Formation decreases by way of investments in education and health.
Detailed explanation-3: -As follows, education has an important influence on economic development: Education enhances people’s access to current and scientific concepts. It improves people’s efficiency and capacity to absorb new technologies. It raises knowledge of potential possibilities and labor mobility.
Detailed explanation-4: -Investment in education and on-the-job training helps to impart these skills and enhance the knowledge base and thus helps in the absorption of new technologies which leads to higher production and thus economic growth. Thus it is evident that human capital contributes to economic growth in various ways.