Question

Assertion (A): Human capital formation increases the rate of participation of the population in economic activities and leads to economic growth.

Reason (R): Rate of participation of people refers to the percentage of people engaged in the production process of a country.

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, but 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.

Answer 1

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

Explanation:

• Assertion (A) is true. Economic growth and increased workforce productivity result from human capital formation, which encompasses health, education, and skills.
• Reason (R) is also true. In fact, the percentage of individuals involved in the production process is known as the participation rate.

Assertion (A) is directly explained by Reason (R). Economic growth is achieved through increased involvement, driven by the formation of human capital.