Page 2 - HA1

Assertion (A): Investment in human capital, such as education, training, and medical care, yields
return comparable to investment in physical capital.
Reason (R): The higher incomes earned by more educated or better-trained individuals and the
increased productivity of healthier people directly showcase the negative impact of investing in
human capital
(a) Both A and R are true and R is the correct explanation of A.
(b) Both A and R are true, but R is not the correct explanation of A.
(c) A is correct, but R is wrong.
(d) A is wrong, but R is correct.
7 In the question given below, there are two statements marked as Assertion (A) and Reason (R). 1
Read the statements and choose the correct option:
Assertion (A): While the more educated and healthier individuals enjoy higher incomes, the
societal benefits of a well-educated and healthier population spread to individuals who may not
have directly received education or healthcare.
Reason (R): The advantages of a more educated and healthier population have indirect benefits
that extend beyond those who have directly received education or healthcare.
(a) Both A and R are true and R is the correct explanation of A.
(b) Both A and R are true, but R is not the correct explanation of A.
(c) A is correct, but R is wrong.
(d) A is wrong, but R is correct.
8 Differentiate between the market and non-market economy. 2
9 Why is it important to have basic facility available in the early childhood? 2
10 What does a 'virtuous cycle' created by the educated parents mean? Explain. 3

11 Define human capital formation. Explain any two benefits of investment in human capital. 3

13 “Human resource” is an indispensable factor of production." Justify. 5

14 One of your friends is caught in vicious cycle due to poverty. What can you do to help him overcome it? 5