Question : Which policy measures can promote human capital formation?
Option 1: Increasing taxes on education
Option 2: Reducing public investment in healthcare
Option 3: Providing scholarships and grants
Option 4: Decreasing government spending on research
Correct Answer: Providing scholarships and grants
Solution : The correct answer is (c) Providing scholarships and grants.
This policy measure aims to support individuals in pursuing education and skill development by providing financial assistance. Scholarships and grants help reduce the financial burden on students and encourage them to invest in their education, ultimately enhancing their human capital.
In summary, policy measures that support individuals through scholarships and grants are more likely to promote human capital formation.