Question : Statement 1: Human capital formation hinders economic productivity.
Statement 2: Human capital formation enhances economic productivity through the development of skilled and knowledgeable individuals.
Option 1: Statement 1 is true, and statement 2 is true.
Option 2: Statement 1 is true, but statement 2 is false.
Option 3: Statement 1 is false, but statement 2 is true.
Option 4: Statement 1 is false, and statement 2 is false.
Correct Answer: Statement 1 is false, but statement 2 is true.
Solution : The correct option is (c) Statement 1 is false, but statement 2 is true.
Statement 1 suggests that human capital formation hinders economic productivity. This statement is false. Human capital formation, which refers to the development of knowledge, skills, and abilities in individuals, actually enhances economic productivity. When individuals acquire and enhance their skills and knowledge through education, training, and experience, they become more productive contributors to the economy. Skilled and knowledgeable individuals are better equipped to innovate, problem-solve, and adapt to changing circumstances, leading to increased productivity in various sectors of the economy.
Statement 2 correctly states that human capital formation enhances economic productivity through the development of skilled and knowledgeable individuals. By investing in education, training, and skill development programs, societies can improve the quality and productivity of their workforce. Skilled individuals can perform tasks more efficiently, generate new ideas, and contribute to technological advancements, all of which lead to higher levels of economic productivity.
Therefore, statement 1 is false, but statement 2 is true.
Question : Statement 1: Investment in human capital reduces economic growth.
Statement 2: Investment in human capital promotes economic growth and development.
Question : Statement 1: Human capital formation is a passive process that relies solely on individuals' efforts.
Statement 2: Human capital formation requires proactive investments and interventions from governments and institutions.
Question : Statement 1: Human capital formation is solely the responsibility of the education system.
Statement 2: Human capital formation involves the collective efforts of the education system, government, businesses, and individuals.
Question : Statement 1: Technological advancements have no impact on human capital formation.
Statement 2: Technological advancements drive the need for continuous human capital development and upskilling.
Question : Statement 1: Human capital formation is an expensive process that does not yield significant returns.
Statement 2: Human capital formation is a worthwhile investment that yields long-term economic and social benefits.
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