Q. Given below are two statements, one is labelled as Assertion (A) and the other as Reason (R).
Assertion (A): Investment in human capital yields returns in the future.
Reason (R): Education and health make people more productive.
Select the correct answer from the code given below :
a) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
b) (A) is false, but (R) is true
c) (A) is true, but (R) is false
d) Both (A) and (R) are true and (R) is the correct explanation of (A)
Correct Answer: d) Both (A) and (R) are true and (R) is the correct explanation of (A)
Question from UPPSC Prelims 2025
Explanation:
Assertion (A) is true: Investment in human capital (education, training, health, nutrition) yields returns in the future through higher productivity, better employment prospects, and higher lifetime earnings; these benefits materialize over time, hence the future orientation.
Reason (R) is also true: Education enhances skills and knowledge, and health reduces morbidity and absenteeismโboth directly increase worker productivity. R correctly explains A because the mechanism by which human capital investments yield future returns is the productivity gain that translates into higher wages and output.