Question

Read the following statements – Assertion (A) and Reason (R). Choose the correct option from the options given below :
Assertion (A) : People spend to acquire information related to labour and other markets (like, education and health).
Reason (R) : Expenditure on information is necessary for efficient utilisation of the human capital stock.

• A. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
• B. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
• C. Assertion (A) is true, but Reason (R) is false.
• D. Assertion (A) is false, but Reason (R) is true.

Hint:

Human capital development relies on access to information, which leads to better decisions in health, education, and employment.

Answer 1

The Correct Option is A

Assertion (A) is true as acquiring information related to labour, education, and health is essential for human capital formation.
Reason (R) is true because expenditure on acquiring such information is key to efficient use of human resources, as it helps individuals and businesses to make better decisions. Thus, Reason (R) explains Assertion (A).