Question : Assertion (A): Human capital formation is a stock concept. Reason (R): Variables that are measured at a specific time are referred to as stocks.
Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Option 2: Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
Option 3: Assertion (A) is true but Reason (R) is False
Option 4: Assertion (A) is False but Reason (R) is true.
Correct Answer: Assertion (A) is False but Reason (R) is true.
Solution : Human capital is a stock idea, but the human capital formation is a flow concept because it only adds to the stock of human capital that already exists and can only be quantified over time. So the concept of human capital formation is one of flow. Hence option d is the correct answer.
Question : Assertion (A): Complementary goods have joint demand. Reason (R): In order to fulfill a specific need, complementary commodities are simultaneously desired.
Question : Assertion: The desire for complementary commodities is shared. Reason: In order to fulfill a specific need, complementary goods are simultaneously demanded.
Question : Assertion: Complementary goods have joint demand. Reason: In order to satiate a specific need, complementary items are simultaneously needed.
Question : Assertion: Physical capital is tangible in nature Reason: Physical capital can be seen and touchable.
Question : Assertion (A): A new business is likely to have lesser goodwill. Reason (R): Goodwill is an intangible asset.
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