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.