Question

Assertion (A): In developing countries, growth of human capital has been faster than the growth is rather nebulous.

Reason (R): Empirical evidence to prove that increase in human capital causes economic growth is rather nebulous.

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 true but Reason (R) is true.

Answer 1

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

Explanation:

Due to measurement issues, empirical evidence supporting the idea that economic growth is a direct result of an increase in human capital is fairly hazy. This is due to the fact that health services evaluated in monetary terms, life expectancy, and mortality rate do not measure the health state of the people in an economy, and education measured in terms of years of schooling, teacher-to-pupil ratio, etc., do not reflect the quality of education. An examination of health, education, and per capita income growth in both rich and developing nations using the aforementioned variables reveals that while human capital metrics are convergent, real income per capita is not.